Learn about Secured Debts in a Texas Bankruptcy
Secured debts and how you may be affected by secured debts in a bankrupcty.
Secured creditors normally retain the right to seize their loan collateral, even after a discharge is granted. The debtor must decide whether to keep the asset.
If a debtor returns the collateral, and if a discharge is granted, the debtor will have no further liability to the creditor. A debtor wishing to keep the asset, such as an automobile, may “reaffirm” the debt or redeem the property. A reaffirmation is an agreement between the debtor and the creditor where the debtor promises to pay all or a portion of the money owed. The reaffirmed debt will still be owed after the discharge. In return, the creditor promises as long as payments are made, the creditor will not repossess the automobile or other property.
If the debtor defaults on the payments, the creditor may repossess and sell the collateral. Unfortunately, if the sale price is not enough to pay off the debt, the debtor will still owe a deficiency to the creditor.
Have more questions about on bankruptcy in Texas? Call the DFW Bankruptcy attorney, Andrew Nichols today!
Law Firm of Dallas Bankruptcy Attorney Andrew B. Nichols
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Call (214) 999-1313
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Dallas, Texas 75254
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– DFW area Bankruptcy Attorney servicing Dallas , Fort Worth, Richardson, Garland, Plano, TX and the surrounding areas. Chapter 7 Bankruptcy Attorney / Chapter 13 Bankruptcy Attorney / Debt Relief Attorney