Trying to file Chapter 7 already have creditors wanting to come see my collateral because I haven't paid them in a few months. Now I'm wondering if I do file Chapter 7 if all of these creditors are going to want their collateral when I do because I don't want to give up my collateral
While a creditor with valid lien on property is entitled to either payment or its return after a bankruptcy, it sort of depends on what the collateral is. Many creditors financing consumer goods, like cell phones, don't bother to retrieve the property after a bankruptcy. But some do. If you want to keep the property, you can choose to continue to pay for it or can obtain a redemption order to pay for the item at fmv. Hope this perspective helps!
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As stated above, it depends, but they are entitled to recover the property if it tied to a debt. I suggest you call an attorney immediately, and you have already had one local to respond.
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