When secured creditors repossess collateral, often a vehicle, it is possible to have it returned by filing for bankruptcy. The debtor must immediately file a bankruptcy petition and motion for turnover against the creditor that repossessed the property.
An attorney can help you better negotiate with creditors and create a more manageable repayment plan. A knowledgeable bankruptcy lawyer can also help you understand your rights as a consumer and assess the statutes of limitation that may apply your debts.
Chapter 13 bankruptcy is only available to individuals, sole proprietorships, and individuals who are self-employed or operating an unincorporated business. Corporations or partnerships do not qualify for this type of bankruptcy.
To discharge debts in Chapter 7 bankruptcy, an individual must demonstrate that he or she has very little income to pay off debts. As opposed to the reorganization of Chapter 13 bankruptcy, Chapter 7 is an asset liquidation process, so if you have steady income, you may not qualify.
The myth that student loans cannot be modified in bankruptcy is so pervasive that most debtors do not try to include them. More lawyers are realizing that reducing or modifying student loan debts during bankruptcy is possible and becoming more common.
In a class action lawsuit against Navient, one of the largest student loan servicers in the U.S., a Texas Bankruptcy judge has denied the defendant’s motion to dismiss, making clear that funds received as an “educational benefit” are not necessarily exempt from discharge in bankruptcy.