The S’s of Bankruptcy in Indiana

June 22, 2013 12:55 pm Published by

The word “secure” has a nice, safe ring to it, don’t you agree?  The irony is, when it comes to filing personal bankruptcy in Indiana, Unsecured debts are sometimes easier to deal with.

The glossary found on the website defines a secured creditor as “an individual or business that holds a claim against the debtor that is secured by a lien on property….The property is the secured creditor’s collateral.”

At all five Zuckerberg bankruptcy law offices, the two kinds of secured loans we see most frequently are home mortgages and car loans.

Let’s talk about car loans. As a debt consolidation lawyer offering Indiana bankruptcy help, dealing with cars, car companies, and car owners often takes up an important part of my workday.  After all, it doesn’t do you any good not to be able to get where you need to go while you’re making your fresh financial start through bankruptcy in Indiana!

So, if a car loan is a secured loan, and if, according to the laws of Indiana, once a car has been repossessed, the creditor has the right to sell it (and can still sue the debtor if the sale doesn’t satisfy the entire debt owed!), how can bankruptcy help?

First of all, as I’m always reminding readers in these Bankruptcy in Indiana articles, I’m always mentioning the automatic stay. In terms of cars, what this means is that once a bankruptcy filing is official, lenders cannot repossess the car. In fact, if a Chapter 13 bankruptcy is filed up to ten days after a repossession, the creditor must give the car back.

Well, what about home mortgages, the other common form of secured loan? Can filing bankruptcy help stop foreclosure? The automatic stay again stops all collection efforts, including attempts to foreclose on your house, at least for a few months.  When it comes to Chapter 13 bankruptcy law, foreclosure actions can be stopped for as long as five years!

In short, even though the term Bankruptcy Automatic Stay doesn’t begin with an S, it has a nice, safe ring to it, wouldn’t you agree?


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This post was written by Mark Zuckerberg

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