Secured Debts such as for example mortgages and car loans
You have to record your entire secured debts such as home loans or automobile financing in your Bankruptcy. Secured debts are debts where you have security when it comes to loan such as for instance household or automobile. You will have to record those debts for a Statement of Intention. You essentially have three alternatives together with your debts that are secured. (1) you are able to surrender your security, such as for instance a home or car, instead of paying the guaranteed debt. The debt will discharge with the unsecured general non-priority debts in this case. (2) you could redeem the security. Exactly just What this means is that one can spend the worthiness for the collateral and redeem the name towards the homely household or car. Or (3) you can elect to do a reaffirmation. A reaffirmation is an understanding between both you therefore the creditor that is securedhome loan business or auto loan business) that basically reinstates that loan. What which means is if you have not filed for bankruptcy on that debt that you will be personally liable for that mortgage or car loan as.