Handling Secured Debts in Colorado Bankruptcy
By Bankruptcy Attorney on Mar 23, 2007 in General Bankruptcy Information
Secured debts include your house, car, and other items you may have financed in order to purchase them, such as televisions and household goods. This is different then when you purchase an item on a credit card as the lender takes an interest in what you purchase and if you default on payment the lender can take the item back.
In a Colorado Bankruptcy you have options regarding your house, vehicle(s) and other property secured by liens. These options include retaining (keep making monthly payment and keep item), surrendering (stop paying and return item), reaffirming (agree to be liable for the debt even though you filed bankruptcy) or redeeming (paying less than what is owed and keeping item).
Generally, people make regular monthly payments to all secured creditors for items they plan on keeping in the bankruptcy and keep these items insured in order to preserve as many of above options in the bankruptcy as possible.
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