Q: Can filing bankruptcy eliminate claims my secured creditors have against me?
A: Secured debts are treated differently in Chapter 7 bankruptcy than other kinds of debts. Although the secured debt itself may be discharged in bankruptcy (and usually is), the creditor may still have a right to take the property back if you default on the payments.
A: Based upon the minimal information provided, I would agree with my colleagues response to your question. Specifically, in a chapter 7, your personal liability for the secured loan is discharged. However, in general the lien on whatever is securing that loan, remains. If you want to keep whatever you purchased which is securing the loan, you must pay the loan. There are many other details and issues related to this issue. I recommend you seek advice from an experienced bankruptcy attorney before you file a bankruptcy case to consider all options.
A: Hard to give you specific information with more from you but generally a secured creditor retains the security interest in the property.
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