Free Consultation

Secured line of credit

If I hve ascured line of credit, which has beeen consumed up, how the bankruptcy will handle the issue ?

Posted from: Ontario

One Response to “Secured line of credit”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

A bankruptcy really won’t have much of an impact, assuming you want to keep the property that has been pledged as security. The only ways to retain the property is to continue to make payments on it or if the secrued creditor doesn’t want the property back.

If you give the property back prior to filing for bankruptcy or the secured creditor decides to not pick up the property, then the debt becomes unsecured and is cleared by the filing of the bankruptcy.