Archive for January, 2014

The Debt and the Lien: Two Completely Different Problems

Tuesday, January 14th, 2014
article by admin from BLN

A debt is a lawful obligation, usually to pay money to someone.

Secured Debts……. are those where the borrower has granted the lender a lien or security interest in some item of real or personal property to ensure that the lender is actually paid.

Two simple and common examples are home loans – where the borrower secures the loan with his house; and car loans – where the loan is secured by the car. In both cases, if the loan isn’t paid when due, the lender can recover the security: the house or the car to pay off the loan.

As a bankruptcy attorney, I explain this all the time to my clients. It’s not an easy concept to grasp, and I am often asked “But why if I don’t have to make payments, can they still take my car?”

In Bankruptcy, a discharge will terminate the obligation to pay the debt. But it doesn’t remove the lien! So, although the borrower may no longer have the responsibility to pay the debt, if he wants to keep the security he will have to pay. Thus, a car loan is discharged in most bankruptcies and the borrower no longer has to pay the car company or bank. But the lien remains, so the lender can still pick up the car for non-payment.

The same is true for a home loan. The bankruptcy actually discharges the debt, but the house remains with the lien or mortgage attached. So, the owner can’t sell the house without paying off the bank.

The only real effect the bankruptcy has in either scenario is that the car company or the mortgage bank can’t get any more from the debtor after the bankruptcy than the security. Thus, default on the car payment, the car company gets the car. Don’t pay the mortgage and the bank can foreclose on the house.

Carolyn Secor is a Clearwater bankruptcy attorney and Clearwater foreclosure attorney serving Palm Harbor, New Port Richey, Oldsmar, Tarpon Springs, Seminole, St. Petersburg and the Tampa Bay area.

If you would like more information on our practice, please consult our website at:

www.bankruptcyfortampa.com
or call (727) 254-1704.

Filing For Bankruptcy

Friday, January 3rd, 2014
article by admin

Credit Card Debt

We live in a society where using credit cards has become a normal part of everyday life.

Although credit cards can help us establish needed credit, they can also sometimes “help” us accumulate an excessive amount of debt. Chapter 7 bankruptcy was designed to retire credit card debt

If you’re thinking about filing for bankruptcy, you’re not alone. Millions of Americans struggling with debt from credit cards, medical bills and mortgages file bankruptcy every year to get a fresh start.

Bankruptcy is a legal process that can stop collection calls and wipe out debt for good. What can bankruptcy do for you?

Bankruptcy’s Automatic Stay

When a person files for bankruptcy, they usually receive immediate protection from creditors through a special court order known as the bankruptcy automatic stay.

This means creditors must stop collection efforts.

The Stay is Designed to STOP Debt Collectors

The automatic stay in bankruptcy was designed to:

  • HALT foreclosure
  • STOP repossession
  • SILENCE creditors
  • STOP many lawsuits & wage garnishments

The two main types of consumer bankruptcy, Chapter 7 and 13, are designed to erase debt and stop debt collectors.

Sound like the kind of help you need? Ask a bankruptcy lawyer if filing bankruptcy and could help you.

Carolyn Secor is a Clearwater bankruptcy attorney and Clearwater foreclosure attorney serving Palm Harbor, New Port Richey, Oldsmar, Tarpon Springs, Seminole, St. Petersburg and the Tampa Bay area.

If you would like more information on our practice, please consult our website at:

www.bankruptcyfortampa.com
or call (727) 254-1704.