Legal Question in Bankruptcy in California

Keeping property

I want to file for bankruptcy chapter 7 but I have one creditor that when I signed the contract, it states that I would have to sell my personal property to pay off the credit debt. Does this contract change if I file for bankruptcy? Are there certain laws that would protect me? Thank you for your assistance.


Asked on 10/22/02, 3:59 pm

3 Answers from Attorneys
Chris Johnson Christopher B. Johnson, Attorney at Law

Re: Keeping property

There are personal property exemptions allowed, and these may be enough to cover what you have. If not, the bankruptcy attorney would have to review the agreement to see whether it indeed creates a security interest in your personal property.

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Answered on 10/22/02, 5:12 pm
Mark Markus Law Office of Mark J. Markus

Re: Keeping property

Are you saying that this creditor has a security interest in your personal property? If that is the case, and they have properly perfected their security interest, then they would be entitled to receive the value of the personal property on which they are secured. If it is not secured, then that provision of the contract is void in a bankruptcy. Whether you can exempt the value of the property depends on what their values are.

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Answered on 10/22/02, 6:56 pm
Alvin Tenner Law Office of Alvin G. Tenner

Re: Keeping property

This sounds like a security interest in personal property which may not allowed in BK. However, it will be up to the trustee in BK to make a final decision.

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Answered on 10/23/02, 12:00 pm


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