Secured debt
What defines `secured debt` in bankruptcy? Is it the contract or is it the actual registering of a lien on the secured property? I have property which is supposedly `secured` by contract but I cannot find a lien registered against it in Ontario. If I declare bankruptcy , will I be able to keep the property (it comes under the `tools of trade` exemption) and list the creditor as unsecured?
Posted from: Ontario
Security can be a tricky thing – in most cases a lien is required to “perfect security” (this is a legal term that basically means the security is valid and enforceable), BUT even when security has not been perfected the creditor may still have rights to the collateral.
In order to get a more detailed response, you should speak to some one directly – a lawyer or trustee can explain how the law works, but it will be up to the creditor to decide how hard they want to fight for the security if it has not been perfected.