QUESTION
Will I be able to file bankruptcy on personal loans that have collateral standing good on the loan?
Asked on May 08th, 2021 on Bankruptcy - Louisiana
More details to this question:
Me and my youngest daughter are both getting disability. I have 6 loans under my name, 4 loans under my wifes name and 3 loans under my daughters name. With what I'm paying per month for all of them plus my utilities I'm broke for the month.
1 ANSWER
Bankruptcy Attorney serving Mandeville, LA
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Your personal loans secured by collateral can be included in your bankruptcy case. If you file for Chapter 7 relief, you will have the options of reaffirming the debt (continue to pay as if no bankrutpcy was filed) or redeeming the collateral (make a single lump sum payment for the current fair market value of the collateral). Redemption is really the way for you to go. Use E-Bay valuations for the personal property you put up as collateral and you should be able to buy it back pretty cheaply.
Answered on May 10th, 2021 at 9:44 AM