Secured creditors are lenders who have collateral for the loan or purchase on credit. Secured debts are these debts, backed by collateral, which will be claimed by the lender in the case of default on payment. These include debts such as, mortgages and car loans, and the lender can foreclose and repossess your security if you fall behind or stop payments.
Secured debts, if you choose to keep the asset and continue your payments, are not discharged by bankruptcy. These debts remain and must be paid, or your creditors can repossess the associated asset.
A creditor cannot seize your asset simply because you filed for bankruptcy. Additionally, lenders often prefer to keep the mortgage or financing going if you can afford the payments. However, this will only happen if you keep up to date on your mortgage or financing payments. If you are heading into financial distress, seek professional advice as soon as possible.
Your licensed insolvency trustee will help you determine how best to address secured assets.
If an asset, such as your house, is worth less that the amount you would have to pay to keep it (including mortgage, outstanding taxes, legal fees, and bills) then you have negative equity. If so, and if you do not want to keep that asset it can be dealt with at the time you file for bankruptcy. If the asset is given up when you file any deficiency balances after the asset is disposed are dischargeable in your bankruptcy.
Secured debts and assets are not affected by consumer proposals. If you are eligible for a consumer proposal, your assets are not used to deal with your unsecured debt unless specified in the proposal and secured creditors do not participate in the consumer proposal.
Extremely professional service by Mr. Thatcher and his team. Mr. Thatcher and his team were always available and quick to answer any questions concerning bankruptcy. I would highly recommend this company to anyone that would require his services!
I have worked with Kevin and his office for many years and would recommend his services to anyone who is having financial difficulties. He is very professional and has spent many years helping people get out of tough debt situation.
The staff at Kevin Thatcher & Associates are incredibly understanding, non-judgmental people who honestly advised me of all my options before I chose to go bankrupt. I was surprised at how easily they broke down the process for me step-by-step so I was able to meet all the requirements.
I just wanted to thank everyone at Kevin Thatcher and Associates for their help. I was at wit's end and couldn't cover most of my bills. I was afraid to answer the phone ever as it might be another collector calling! I was so depressed.
I was looking for a bankruptcy firm and was recommended Kevin Thatcher and Associates. I initially spoke with his pleasant and knowledgable staff(Anna) over the phone. I was very impressed by her and her soft approach being in a difficult situation.
Very kind, caring and helpful group at Kevin Thatcher and Associates.
I was in a real bind with a lot of debt from credit cards and payday loans but I met with Kevin and his staff were very understanding of my difficulties paying. I paid for 21 months under these federal income rules, but was way cheaper than if I did nothing.
Staff is extremely kind and knowledgeable! They took a stressful situation and made it more manageable, so thankful for their expertise.