Discharge Finance Companies & Personal Loans

How small loans are handled depends on whether you executed a Security Agreement when you obtained the loan and, if so, what property did you list on the agreement?

If it’s just a signature loan (no property listed) the debt can be eliminated in Chapter 7 or paid the starting amount of 1% for “unsecured creditors” in Chapter 13. Increases may apply based on your income and assets.

If you did sign a Security Agreement, what did you list?

If you listed a vehicle, large lawn equipment or building, or jewelry of value:

• If you don’t want to surrender this property, these liens may survive Chapter 7 or you can pay their value in Chapter 13.
• Sometimes even when the property is “surrendered” in the bankruptcy paperwork, which eliminates the lien, the creditor may not collect the property.

If you listed other “household goods”, for example Tvs, game systems, computers, etc.

We can eliminated these! We will discuss the Motion to Avoid Liens in Household Goods during your consultation.