THE FOLLOWING INFORMATION APPLIES TO THE NORTHERN AND EASTERN DISTRICTS OF TEXAS ONLY:
SPECIFICALLY THE DALLAS AND SHERMAN (PLANO) DIVISIONS.
In a Chapter 7 Bankruptcy in Texas, debtors are usually able to retain their assets which are secured by a creditor. A creditor who is secured (has collateral that it can repossess) can require that you sign a Reaffirmation Agreement, Redeem the collateral, or Surrender it. General examples of secured debts are your house and vehicles.
If you sign a Reaffirmation Agreement, it is as if you had not filed bankruptcy with respect to that creditor. The secured debt that is reaffirmed survives the bankruptcy and you remain personally liable. That means if you thereafter fail to make the payments, the creditor can repossess the collateral and sue you for any amount owing after it sells the collateral.
You may have the right to redeem the collateral by paying its value rather than the total amount that you owe. If you select this option, however, the creditor can require that you make one lump sum payment – you can not require the creditor to take a pay-out.
If you have given a creditor a lien on household goods that you already owned at the time, you may be able to avoid the lien. Notify your Texas bankruptcy attorney if you believe that you have such a circumstance.
Call Lusky & Associates, P.C. for a FREE CONSULTATION (972) 386-3900.