Can I Discharge Secured Debt in a Bankruptcy?

Secured debt, such as a mortgage or automobile loan, is treated differently in bankruptcy than unsecured debt, such as a credit card.  If you intend on keeping an item in a bankruptcy that has a lien against it, an agreement will have to be worked out.   In many instances, a lower rate, payment or extended payoff time can be agreed upon.

Unlike credit cards and other unsecured debt, there is an expectation to pay for secured items a debtor intends to keep.  If you have secured items and are planning on filing Chapter 7 or Chapter 13, contact the Fears | Nachawati Law Firm to explore your options.