Security Agreement?

• The handling of the finance company loan depends on if you signed a Security Agreement when you got the loan and the kind of property included on the agreement.

• In the case of a signature loan (no property is pledged):

  • There are two options for dealing with debt: Chapter 7, which wipes off debt entirely, and
    Chapter 13, which pays "unsecured creditors" the minimum payment of 1%. Potential increases are based upon your assets and income.

     

• If a Security Agreement was signed, what did it include?

• Valued possessions such as a car, a house, a shed, or a collection of jewelry

  • These liens may survive Chapter 7 or you may be able to pay their value in Chapter 13 if you don't want to give up this property.

  • A creditor may not be able to reclaim property even if it is "surrendered" in bankruptcy proceedings, which nullifies the lien.

• T.V.s, video gaming consoles, laptops, etc., are examples of "home items" that fall within this category.

  Eliminating them is possible! During our meeting, we will go through the Motion to Avoid Liens in Household Goods.