Some possessions are easily discarded in exchange for debt relief. Others carry significant value or have sentimental attachments. If you have financed some of your possessions, they may be secured debt, and have to be accounted for in bankruptcy.
How Do We Deal With Secured Debt?
Secured debt — debt that has specific property or assets attached to it — can also be reduced through the process of bankruptcy. It is a more complex process than what is required with unsecured debt, but a knowledgeable lawyer can explain your options.
The two most common forms of secured debt are mortgages and car loans. There are, however, a great number of other secured debts that individuals have, including:
- Appliance loans
- Financed jewelry
- Financed electronics
- Financed furniture
In a Chapter 7 bankruptcy, we can often work with the lenders on our clients' behalf to negotiate balances and interest rates in an effort to reduce payments. Property can also be surrendered back to the creditor and the debt eliminated. In a Chapter 13 bankruptcy, we will also work with the lender. Our goal is to pay them a reduced amount with a reduced interest rate within the terms of the payment plan, all while protecting the property that is secured as collateral.
If you are considering bankruptcy as an option, it is important to act fast to protect your finances and your financial future. The longer you struggle with increasing debt, the deeper a hole you dig for yourself. Our firm can examine your finances and act quickly to help you start fresh.
Contact Any of Our Area Offices
The Chicago bankruptcy attorneys at Ledford, Wu & Borges, LLC have a great deal of experience guiding clients through the process of filing for bankruptcy. Our skill and our knowledge of bankruptcy law are of great benefit to individuals who find themselves buried under a mountain of debt. Do not hesitate to schedule a free consultation with an attorney at any of our Chicago area offices to discuss your specific situation. Learn more about how to handle secured debt with bankruptcy. Call 312-574-3327 or contact our offices by e-mail to discuss your options during a free consultation with an attorney.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.