Legal Question in Bankruptcy in California

secured debts

When you file for chapter 7 and you have a secured loan, if you are willing to give up the collateral to the creditors, what if you don't have all of it still. Can you negotiate with them for other items or do you have to pay the difference? I am willing to forfeit the items but i found i don't have all of them any more. I would be willing to forfeit other items in their place.


Asked on 7/14/02, 6:08 pm

2 Answers from Attorneys
Douglas A. Crowder Crowder Law Center

Re: secured debts

You may not have to pay the secured creditor anything, depending on what the collateral was and why you don't have all of it anymore. For example, if the security was furniture, and some of it was thrown away because it was broken, or stolen, then all the creditor can do is take whatever you still have. On the other hand, if the security was something of major value, such as a piece of equipment or a vehicle, and you just gave it away, then the creditor might be able to get it back from whoever you gave it to, or require that you pay for its value.

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Answered on 7/15/02, 2:03 pm
Amy Ghosh Law Offices of Amy Ghosh

Re: secured debts

You can always negotiate with the creditor. Call me direct if you need help with filing.

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Answered on 7/14/02, 6:45 pm


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