secured debt Tag

29 Sep Can I File Bankruptcy if My Only Income is Social Security?

If your only income is Social Security or SSD, you can file bankruptcy. But you may not have to. If you do not plan on going back to work, you may not need to file bankruptcy because you are considered to be "judgment proof". That means that while your creditors can sue you and obtain a judgment, they may not be able to collect anything from you. Creditors generally cannot recoup any money from your social security income. You should determine, however, if you own any other real or personal property that creditors could get their hands on. It is best to review your situation with an experienced consumer bankruptcy attorney.
Read More

11 May Is Reaffirmation of a Mortgage Required?

When you file for bankruptcy, you are generally given three choices with regard to a secured debt; that is, a debt that is attached to a lien on something you own. The Bankruptcy Code specifically deals with reaffirmations and when and how they must occur. That information appears elsewhere on this site and there is debate over whether there is a fourth option to keep the collateral and continue paying the debt without reaffirming. But, do you need to reaffirm a mortgage too? When the Bankruptcy Code was changed in 2005, much emphasis was placed on reaffirming secured debt. The lenders proposed, and paid for, a change in the law to require a consumer to reaffirm a car loan or the lender would be given the right to ignore the bankruptcy and repossess the car. The same is true for loans on other kinds of personal property. When you do not reaffirm a loan secured by personal property, the automatic stay of the bankruptcy case is automatically terminated. It is up to the lender and state law what happens next. But what about real property? What about your home? Do you need to reaffirm a mortgage to keep it and be allowed to keep paying the payments when you file for bankruptcy?
Read More