Legal Question in Bankruptcy in New York

secured debts in Chapter 7 bankruptcy

I am thinking of filing chapter 7. I noticed two of my credit cards refer to "Security Interest," specifically, the form states, "You grant us a purchase money security interest in the goods purchased on your Account."

What does this mean? What options do I have in handling this in a New York bankruptcy?

Thank you.


Asked on 3/22/99, 4:25 pm

1 Answer from Attorneys
Bunji Fromartz Fromartz Law Offices

Re: secured debts in Chapter 7 bankruptcy

This means the credit card issuer may file a lien against the goods you purchased in the county clerk and Dept. of State where you reside, however if the credit issuer does not file the lien with in a certain time after purchase the Bankruptcy Court will not honor the claimed secured interest.

This is a personal opinion not a legal one (but a good personal opinion).

Bunji Fromartz

Fromartz Law Offices

32 Court Street, Suite 507


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Answered on 4/09/99, 6:10 pm


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