Needless to say, Congress did not like finance companies that loan money to consumers, and list household furniture, appliances, yard equipment and other needed items, then threaten to repossess those if a consumer gets behind on payments. Therefore, if a finance company has loaned you money and taken a lien on those household furnishings that you had already paid for, you can discharge (i.e. wipe out) that lien in a bankruptcy. This can be done only in bankruptcy. If you qualify to file a chapter 7 bankruptcy, you discharge (i.e. wipe out) the entire finance company debt. You can do this no matter how many finance companies you owe money to. If you file a chapter 13 bankruptcy, you would pay only a percentage of the debt without interest. These bankruptcy maneuvers save consumers thousands of dollars.
If however a finance company has financed some new property, such as a television, stereo, mattress, appliances, furniture, etc. you must pay those debts in a bankruptcy. However, if you file a chapter 13 bankruptcy, the monthly payments and interest rates are reduced considerably, which frees up money for basic necessities such as house payments, car payments, groceries, utilities, etc. Again, this can only be done in bankruptcy.
We at The Cooper Law Firm have helped thousands of consumers restructure their household debts by reducing monthly payments and interest rates, or by wiping out certain debts altogether. Understand that if you wipe out debts in bankruptcy, creditors whose debts are wiped out are forbidden by law to ever ask you to pay those debts forever. Once debts are wiped out in a bankruptcy, they are wiped out forever.
Do yourself a favor and call us at The Cooper Law Firm at 864-271-9911 or 1-800-356-0091, or visit us on our website at www.thecooperlawfirm.com. We offer a free initial consultation, and we would like to help you and your family obtain the fresh start you deserve.