Recently on our bankruptcy forum a user asked, “I have decided to file Chapter 7 Bankruptcy. I won’t be able to afford to keep my house. Will the bankruptcy discharge any of the mortgage debt? Will I owe any money after a home surrender back to the bank? What are the first steps for me to take?”
Recently on our legal forum a user asked, “I had my car repossessed last week after failing to make my car payment for a few months. They just came and took it out of my driveway without any warning. I live in the State of Texas. I am wondering if this is legal, and if yes, what are my rights to get it back?”
In general legal terms, a lien is the right to take and hold or sell the property of a debtor as security or payment for a debt or duty. A lien acts as collateral when a debtor must borrow money from a lending institution to pay for personal property. A lending contract is made between the creditor and debtor and payments are arranged to be made over time that might include interest, penalties, and fees in addition to the principal. The legal rights of liens are governed primarily by state laws, but since filing bankruptcy is a federal matter governed by federal laws, a debtor wanting to file bankruptcy should understand the significance of a lien in relationship to the bankruptcy process. Continue reading
Lets face it. When most people finally face the reality they are bankrupt, they are at the place where it can be very hard for them to pay for the help they need to get out of their financial predicament. Most bankruptcy attorneys understand their financial condition, and are willing to provide a free consultation in order to determine whether or not they are in a position to help the debtor. This article is about what some of you may need to know before you embark in free consults with bankruptcy attorneys.