When you fall behind on payment of a debt that is secured by an interest or lien on your car, furniture, jewelry or other personal items, the creditor can repossess these items. Upon repossession, the items are sold and the proceeds credited to the amount you owe. If the sale proceeds are equal to or more than the debt, you have no further liability. If the sale proceeds are less than the debt, which is quite often the case, you owe the amount of the deficiency. Like any other debt, the creditor can take whatever collection actions it deems appropriate, including filing a lawsuit against you.
A bankruptcy may either cancel this debt so that you have no further obligation to pay, OR it may give you the opportunity to stop the repossession, keep the item and pay for it under controlled circumstances at a rate you can afford. In some circumstances - if there is a judgment against you or if the creditor has a non-purchase money lien on certain items - the lien or security interest may be cancelled by the bankruptcy court.
You can act to protect your property!
Each person's situation is different. What applies to one person may not apply to another. To determine bankruptcy options as they apply to you, an attorney competent in bankruptcy matters should be consulted.
If you wish to have a confidential appointment to discuss your bankruptcy options with an attorney in the Law Offices of John M. Miller, you may do so by calling (515) 225-3333 between the hours of 8 a.m. to 5 p.m.(Central Time), Monday through Friday.