06 Jun Negotiate Great Deals on Electronics and Other Secured Debts While in Bankruptcy
Did you know that your time in Chapter 7 is an ideal time to negotiate extremely favorable buy outs or payment terms for secured debts? Because you have the option to surrender secured collateral that may have lost significant value, secured creditors are usually willing to accept pennies on the dollar.
While most people see Chapter 7 as a legal procedure to get rid of debt, it can also be a powerful tool to work out deals on property you wish to keep, at very favorable terms. From the creditor’s perspective, the cost of recovering, storing and reselling old electronics does not make much economic sense. You can and should take advantage of the leverage in your favor that arises from your bankruptcy filing to strike a deal.
In this video, I discuss my experience representing a Chapter 7 debtor who kept the electronics she had purchased at a “big box” electronics store while paying less than 25% of the outstanding balance. Favorable deals like this are often available on secured debts in Chapter 7, but you have to ask.
by Jonathan Ginsberg, Atlanta bankruptcy attorney.
Jonathan Ginsberg, Esq.
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