Bankruptcy Myth 16
Finance companies will take my household items if I file bankruptcy.
If you borrowed money from a small finance company and listed household assets as collateral, they have rights under state law to take all or some of the assets listed as collateral. If we represent you in Bankruptcy, we’ll file a motion asking the bankruptcy court to wipe-out the liens on such items so that you will once again own the item free and clear – as you did before you obtained the loan.
