Fox Lake bankruptcy attorney states that there is a difference between secured and unsecured debt. If you file for Chapter 7 bankruptcy, your unsecured debt is eliminated. Your secured debt, however, you have to make a decision with regard to those items. If you are talking about a car, jewelry, furniture or electronics, those are secured debts. You have the opportunity to either reaffirm those debts whereby you agree to repay under a payment plan to keep those items. You can redeem those items, which means you make a lump sum payment, a one-time payment for the fair market value of those items. Or you surrender those items.
In certain circumstances, I recommend that you reaffirm debt such as on a vehicle that you need to get to work. In other circumstances, I recommend that you surrender items such as jewelry or furniture that you do not need that you bought too close to filing the bankruptcy. Your attorney will be able to guide you with your rights; however, you ultimately have the decision on whether or not you wish to keep an item and pay for it or surrender the item and get out of the debt completely. Speak with your spouse or significant other with regard to jewelry, furniture, electronics and household items that might be on some type of security plan. You can typically continue to work out a deal for the fair market value of those items in many cases and keep those items and survive even after you file for bankruptcy protection.