Iowa Bankruptcy Attorney

Secured Debts in Bankruptcy

Debts that are secured by property you are purchasing, like a home loan mortgage, a car loan or some furniture loan purchases, are secured debts and can be discharged in bankruptcy. However, if you desire to retain the secured property you must continue to keep making payments on the secured loan. In most Chapter 7 bankruptcy cases filed in Iowa, the debtor chooses to keep the car or house or other secured property and is allowed to do so as long as the regular monthly payments are made.

We cannot, in a Chapter 7 case, change or modify in any way the terms of a secured loan. We cannot change the amount owing, the interest rate or the monthly payment amount. As long as you can continue to make the regular monthly payments you can retain the property.

In a Chapter 13 case, you are also allowed to keep secured property, like a house or car, as long as you continue to make the regular monthly payments. There are some limited options available in Chapter 13 case to modify some secured loans. These options are reviewed in the Chapter 13 section below.


If you still have questions about secured debts in bankruptcy, give us a call! 

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