Can Secured Debt Be Discharged in Bankruptcy?

Many consumers are under the impression that all debts are dischargeable in bankruptcy. Unfortunately, this is not the case. Secured debts, such as mortgages and car loans, cannot be discharged in bankruptcy. This means that the debtor is still responsible for repaying these debts even after their bankruptcy case has been closed.

While secured debts cannot be discharged in bankruptcy, there are still options for dealing with them. Debtors can reaffirm their debt, which means they agree to continue making payments on the loan. They can also redeem the collateral, which means they pay off the debt in full and keep the property.

If a debtor is unable to repay their secured debt, then the creditor may foreclose on the property or repossess the collateral. However, even if the creditor takes back the property, the debtor is still responsible for any deficiency balance on the loan.

The Law Offices of Omar Zambrano has already helped thousands of people and businesses in the past to get out of debt and start over.

Our goal is to help you find a fresh start FAST!

Schedule your free consultation today! By Calling 626-338-5505 or visiting us at 12738 Ramona Blvd Baldwin Park CA 91706