How do I deal with secured debts in Chapter 7?
When a debt is secured, the creditor has rights in the security
(or collateral) in addition to the rights against the debtor. The
debtor's personal liability may be discharged in Chapter 7 while
lien rights in the collateral pass through bankruptcy unaffected
unless they are avoided or stripped down. When the lien cannot be
avoided, the debtor gets choices about how to provide for the
creditor's rights in the collateral.
Long term secured debt like mortgages pass through the bankruptcy
unaffected by the discharge. Most creditors secured in real property
are happy to continue receiving payments on the debt, so long as you
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