Rights of Secured Creditors

In chapter 7 cases, we offer reaffirmation agreements for retention of secured property, insuring that these agreements are in compliance with existing bankruptcy law and local bankruptcy rules within each jurisdiction.  Reaffirmation agreements are then filed with the appropriate court via electronic case filing (ECF), and the original agreement is maintained in our files pursuant to ECF requirements.

Redemption is another property retention option that is used less frequently because it requires a lump sum payment to the creditor for the fair market value of the subject collateral.  We actively negotiate redemptions for our creditor clients and refer accounts to local counsel to litigate collateral value as needed.

The last option for chapter 7 accounts secured by personal property is voluntary surrender of the creditor's collateral.  This option is typically selected by debtors who cannot afford to make payments to retain the secured property after bankruptcy.  We insure that our creditor clients' property is surrendered voluntarily by the bankrupt consumer in a timely manner.

While proofs of claim for unsecured debts often require less documentation than debts for secured property, we apply the same attention to detail to preparing both secured and unsecured claims.  This process results in increased recovery for our creditor clients, with minimal objections resulting from confusion over the originating creditor,  the type of debt, or the amount owed to the creditor.