If you are concerned that in a Chapter 13 case a debt resulting from surrendered collateral will cost you more, often it won’t.
Sometimes, even if what you bought is legally collateral on a debt, you can just write off and not pay the debt yet keep what you bought.
Stop secured creditors from taking your property, unsecured debts from turning into secured ones. Keep or surrender collateral as you wish.
After covering Chapter 7 last time, now how does Chapter 13 help you keep (or surrender) collateral on a debt?
A Chapter 13 plan lets you propose what collateral you want to keep and what it is worth paying for, giving you a lot of leverage.
Have your attorney first make sure that your creditor has a right to the collateral. If so, arrange to pay for the right to keep it.
Don’t take for granted how quickly and thoroughly filing bankruptcy protects you, your money, and everything else you own.
Here’s some of the very good news you might hear if you followed up on your New Year’s resolution to go see a bankruptcy attorney.
Filing a “straight bankruptcy” Chapter 7 case stops the repo man even if he’s about to grab your car or truck. What happens next?
Filing bankruptcy immediately protects you and your property from just about any kind of collection attempt by your creditors.
Chapter 13 is bristling with tools to help you manage your mortgage and vehicle loan.
What happens to the furniture, computer and such that you owe money on? Can they be protected under both Chapters?
File under Chapter 7 if you don’t need lots of help keeping your vehicle. File under Chapter 13 if you do.
Saving the vehicle sometimes is not the best option, so Chapter 7 bankruptcy gives you a safe way out.
Straight Chapter 7 bankruptcy gives very limited help if you’re behind on your vehicle and need to keep it. And Chapter 13? Provides much more help.