What About my Home, Car and Other Secured Debts?
Bankruptcy is a legal way to give you a fresh start. Chapter 7 and Chapter 13 bankruptcy each provide unique remedies for people with debt problems. In this section, we discuss one important remedy provided by Chapter 13 bankruptcy: Reorganization of secured debts.
Chapter 13 bankruptcy can be used to restructure certain types of secured debt, including debt owed on a motor vehicle or consumer product. You may restructure secured debts through a Chapter 13 bankruptcy in two ways:
- You may pay down the secured debt on your car or consumer product (e.g. couch, computer or furniture) gradually over the duration of your three or five year Chapter 13 debt repayment plan. This allows you to pay a debt that may have been owed immediately over the course of three or five years.
- You may be able to keep your car or consumer product without paying the full amount of the debt. If your car loan is more than 910 days old on the day you file for bankruptcy, you do not have to repay any portion of your auto loan that exceeds the current value of your vehicle. For example, if you owe $10,000 on your car loan and your car is only worth $5000, you only have to repay $5000. The same concept applies for certain consumer products, except the loan must only be 365 days old.
If you are thinking about bankruptcy and wish to speak with a Tampa bankruptcy attorney, B&B Law Group can provide the sound advice and effective representation you require. Our bankruptcy lawyers represent clients in Chapter 13 and Chapter 7 bankruptcy cases.
Call Today for a Free Consultation
To schedule your free consultation, contact B&B Law Group in Lutz, Florida. We serve clients throughout the greater Tampa Bay area. For assistance, call 813-333-9583 or contact us by e-mail.
