Dealing With Secured Debt
Creditors holding a secured debt are those which have specific legal rights to repossess or take ownership of an asset (house, car, savings account used as collateral, business inventory, etc.) should you default on a loan or credit agreement.
If creditors are lining up for their share of your assets, you need immediate help from an experienced lawyer. The team at Weintraub & Selth can help you protect your assets while reducing or eliminating secured debt. Contact us today.
Consequences of Default on a Secured Debt or Loan
Secured debt creditors may take a variety of enforcement actions and seek court orders that enable them to take some control of your assets, including:
- Foreclosure or seizure on the asset they hold as collateral
- A writ of possession
- A mechanic's lien (for creditors who have done work on a vehicle or your property)
- A tax lien (for the federal government in cases of unpaid tax debt)
When a creditor or creditors seize an asset used to secure a debt, the value of the asset is applied to the overall amount of the debt. If the amount of your debt is greater than the value of the asset, which is most often the case, you are responsible for the remaining amount owed which is an unsecured debt on which you can be sued.
In almost every case, a home equity loan is just another name for a second mortgage, a common type of secured debt. Defaulting on a home equity loan can result in the foreclosure of your house. In today's real estate market, you may be left with substantial debt even after your house has been sold. We have expertise in renegotiating mortgages. We can often help reduce interest rates and therefore your monthly payment, defer payments and reduce principal.
The Los Angeles debt relief attorneys of Weintraub & Selth helps clients in California seek to minimize or discharge secured debt through Chapter 7 or Chapter 13 bankruptcy. Our attorneys can also act on your behalf to pursue real, legal and ethical debt negotiation and mortgage renegotiation solutions.
Please call our L.A. offices at (310) 584-7702 or toll free at (866) 572-2423. You may also e-mail us now with any questions or to request an appointment.
