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:
  • Vehicle, large lawn equipment or building, 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.
  • Other “household goods”, Tvs, game systems, computers, etc.
    • We can eliminated these! We will discuss the Motion to Avoid Liens in Household Goods during your consultation.