If you’re thinking about filing for Chapter 7 bankruptcy, the following information can help you learn more about the basics:
How secured debts are handled
If you have property, money, or assets that you’ve used as collateral in order to obtain a loan, that loan is a secured debt. Cars and houses are some common examples of collateral used in secured loans. If you fall behind on your bills, the lender can request that the automatic stay is lifted in order to seize these assets. But if you’ve been making timely payments, you can hang on to your assets and continue with your payments, unless you have enough principal paid off to validate its sale through the trustee. If a lender has put a lien on your property due to unpaid debt (for instance, this may happen if you didn’t pay a credit card and the bank successfully obtained a court judgment against you), then that is also another example of a secured debt. With Chapter 7 bankruptcy, it may be possible to wipe out such liens.
Are you looking for ways to avoid filing for bankruptcy? Do you want to pay off your debt and bills, but don’t have the financial means to do so? Peachtree Financial Solutions understands that it can be easy to fall behind on monthly bills and we want to help. If you’re receiving annuity or structured settlement payments, there is no need to fall deeper in debt and there may be other options for you besides filing for Chapter 7 bankruptcy. In fact, you may be able to sell some or all of your future payments and receive that money upfront in the form of a lump sum. Receiving your money sooner, rather than later, can make it much easier to get out of debt and potentially avoid bankruptcy. Contact Peachtree Financial Solutions to learn more about how we can help!
Nothing above is meant to provide bankruptcy, financial, or tax advice. You should meet with appropriate professionals for such services.