Repossessions and Bankruptcy
Many consumers file for personal bankruptcy because they have a substantial amount of both secured and unsecured debt. When it comes to unsecured debt, there is no need to be concerned about the possibility of a repossession unless you have pledged your personal property as collateral in order to get the loan. With secured debt, however, the creditor may attempt to repossess the property for which you have the secured debt—such as a car or rent-to-own furniture. Yet understanding how repossession works with regard to bankruptcy can be complicated. Our experienced Oak Park bankruptcy attorneys want to provide you with more information about consumer bankruptcy and repossession. What is Repossession? When you have secured debt, which means there is an asset to secure the loan, the creditor often can repossess the property that secures the loan. Secured loans include auto loans, as well as loans for any tangible item that is in your possession that you are paying off over time (such a...