Statutory liens survive bankruptcy. Chapter 7 may still be able to help in various ways and be your best solution.
Bankruptcy can do more than forever discharge your debts. It can undo some bad creditor actions, like a recorded judgment lien on your home.
When a creditor fails to enforce its lien in a Chapter 7 case, you are left exposed. Not so under Chapter 13.
For a debt to be secured, the creditor has to go through the right legal steps. Otherwise you don’t have to pay the debt.
Chapter 7 doesn’t wipe away “statutory liens.” But Chapter 13 gives you a safe and flexible way to deal with them.
Bankruptcy can’t write off certain kinds of debts. Chapter 7 may give you enough help to avoid liens on your home from those debts.
Stop secured creditors from taking your property, unsecured debts from turning into secured ones. Keep or surrender collateral as you wish.
Creditors with secured debts often have much more leverage against you than with unsecured debts.
The potential ability to get rid of judgment liens from your home’s title is an impressive benefit of bankruptcy.
One of the most important distinctions between these consumer bankruptcy options are how they help or donât help with support arrearage debt.
5 more very good reasons Chapter 13 is worth a close look, even if it takes much longer, and looks more expensive at first.
What happens to the personal possessions and tools of trade that you gave as collateral on a loan?