Live Chat Software

Call us Today to Set Up A
Free Case Evaluation

Call Us Today To Set Up
A Free Case Evaluation

Levitt & Slafkes, P.C. - Essex County Bankruptcy Attorneys

Get The Fresh Start You Deserve

Levitt & Slafkes, P.C. - Essex County Bankruptcy Attorneys
GET THE FRESH START YOU DESERVE

PLEASE NOTE: To protect your safety in response to the threats of COVID-19, we are offering our clients the ability to meet with us virtually. Please call our office to discuss your options.

COVID-19 Information 

Bankruptcy &
Debt Relief For
Individuals and
Businesses

Chapters 7, 11
and 13

FIND OUT MORE

Foreclosure
Defense &
Mortgage
Litigation

Saving Homes
Fighting Banks

FIND OUT MORE

Loan
Modifications

Preventing
Foreclosure

FIND OUT MORE

Commercial and 
Bankruptcy
Litigation

State Federal &
Bankruptcy Court

FIND OUT MORE

Bankruptcy & Debt Relief For
Individuals and Businesses

Chapters 7, 11 and 13

Find Out
More

Foreclosure Defense &
Mortgage Litigation

Saving Homes Fighting Banks

Find Out
More

Loan Modifications

Preventing Foreclosure

Find Out
More

Commercial and Bankruptcy
Litigation

State Federal &
Bankruptcy Court

Find Out
More

Chapter 7 Bankruptcy, Secured Loans & Your Options

| Oct 4, 2013 | Chapter 7 Bankruptcy |

When you file for Chapter 7 bankruptcy, the automatic stay immediately is effective and protects you from collection activity. Many clients ask what happens to debt that is secured by collateral such as a home, vehicle, boat, motorcycle or other asset. It is important to have a plan regarding these assets before you file. A Chapter 7 debtor can only keep collateral pledged to a creditor in a Chapter 7 filing if the debtor is current on his or her payments or if the lender agrees to new payment terms. If you are seriously delinquent on your payments under the mortgage or vehicle loan, your creditor may seek relief from the automatic stay. If the Court grants this request, your creditor will be allowed to proceed with foreclosing or repossessing the asset pledged as collateral under the loan. In sum, a Chapter 7 debtor has one of four options:

  • Keep the payments current
  • Surrender the vehicle to the lender
  • Redeem the vehicle for its value (usually NADA wholesale or its equivalent)
  • Reaffirm the debt (sign a new contract which removes the loan from being included in the bankruptcy case)

If you are interested in learning more about Chapter 7 bankruptcy, contact Levitt & Slafkes to schedule an initial consultation. If you are interested in learning how filing a bankruptcy case can benefit you, contact Levitt & Slafkes, P.C., at 973-323-2953. You can also reach us by filling out our online form. We represent debtors in Chapter 7, Chapter 13 and Chapter 11 filings. Let us help you get the fresh financial start you need today.    

Archives