The age-old question: can a debtor keep their property when declaring bankruptcy? The answer is not as straightforward as you might think. In this article, we'll explore the complex world of secured debts and help you understand your options.
A secured debt is a loan that secures repayment with an asset as collateral. Examples include mortgages, car loans, and student loans. When you declare bankruptcy, these debts become non-dischargeable, meaning they cannot be forgiven. However, some secured debts may still be enforceable.
The key to answering this question lies in the type of asset and its value. If you have a valuable asset that is also a significant portion of your equity, it may be more difficult for the lender to sell or dispose of the asset without your permission. For instance, if you own a primary residence with a significant amount of equity, the lender may face significant challenges in selling the property and using the proceeds towards repayment.
While securing assets may be challenging, there are steps you can take to protect them. Consider the following strategies:
Learn more about protecting your assets and resolving bankruptcy debt on Lawyers Support.
In conclusion, while securing assets may be challenging when declaring bankruptcy, it's not impossible. By understanding the complexities of secured debts and taking proactive steps to protect your assets, you can increase your chances of maintaining control over your property.