If you are thinking about filing for bankruptcy, you may be worried about creditors taking away your possessions to pay off loans. Fortunately, most debtors are able to shield their most important assets during both Chapter 7 and Chapter 13 proceedings. The following are types of property that can be repossessed and sold in order to pay off overdue loans.
If you currently own land, a boat, or other valuable piece of property, you risk repossession when filing for bankruptcy. This occurs because all debtors are required to disclose the specifics of their financial situation to the federal bankruptcy judge when filing their paperwork. A judge will be able to discern whether certain items are exempt from sale under the bankruptcy code and will inform you of the specific property in danger of sale.
Assets Bought with Secured Loans
Much like the large property mentioned above, if you purchased an item with a secured loan such as a mortgage, the creditor may be able to repossess that item for nonpayment. Secured loans, or those backed with property, generally carry lower interest rates because they present a lower risk to the lender. However, this also means that lenders may be able to repossess the item and sell it at auction in order to recoup some of their costs. Examples of this include mortgages and car loans.
A Second Home or Car
Courts often look at a second home or vehicle as extraneous possessions that can be sold in order to pay off creditors. These assets are non-exempt from a trustee’s grasp the way a main car would be. Consult a local attorney to see whether your specific mix of assets would be in danger if you declared bankruptcy.
Are you a Southern California resident who is interested in learning more about how to protect your property from repossession in the event of a bankruptcy filing? If so, speak with a local financial attorney to gain specific answers and peace of mind. The lawyers at Golden State Law Group have been helping Californians for more than three decades, so call (858) 240-2480 to set up an appointment today.
Individuals who owe back taxes or consumer loans may be having their wages garnished. This process involves automatically transferring a percentage of an employee’s paycheck to pay off a loan over time.
If your debts are so severe that your wages may be garnished for decades, bankruptcy can be an effective solution. A state entity generally performs garnishment as a result of a court order, and a reversal of that order by the bankruptcy court will help individuals wipe away debt and stop garnishment once and for all. Debtors with a great deal of unsecured loans such as credit card debt may be able to file for a Chapter 7 discharge to eliminate these lines of credit.
The Golden State Law Group is a Southern California law firm with years of experience helping local households avoid wage garnishment and wipe away loans through bankruptcy. Whether you are seeking Chapter 7 or Chapter 13, our attorneys can help. Call our San Diego office today at (858) 240-2480 to set up an appointment and begin working toward a garnishment-free life.
In Chapter 13 bankruptcy, paying off larger debts involves the creation of an executory contract. This is a legal agreement between the creditor and debtor that outlines the way in which the large debt will be paid off over time.
The federal bankruptcy court judge has the power to adjust terms within these contracts to ensure that they become favorable to the creditor. If you have a steady income and secured debts, filing for Chapter 13 may allow you to restructure your current contacts and lower your monthly payments. This move can also help stop foreclosure proceedings and allow you to keep your home.
As with all financial matters, bankruptcy can benefit some households more than others. Consequently, it is important to speak to an experienced lawyer about your eligibility. San Diego area residents in need of actionable advice should contact the Golden State Law Group by calling (858) 240-2480. Our skilled staff can help ensure that your executory contracts make a dent in your debt.