Question

[karm43]

Has anyone had any dealing with non purchased money secured creditors? How does this work in bankruptsy? Researching finding alot of different answers.

[justbroke]

What are your specific questions or concerns?

For non-PMSI (non purchase money security interest) loans, such as collateral loans with places like CitiFinancial, AIG, etc... you can avoid the lien if it impairs an exemption in 11 USC 522(f). This involves filing a Motion to Avoid Lien (Pursuant to 11 USC 522(f)). Many Districts have a standard form for this; you just fill in the blanks.

There is a formula that is used to calculate the impairment and this is on that calculates the extend of the impairment. Some Districts allow negative noticing so a hearing may not be required.

[karm43]

My question are you responsible for paying whole amount like a swcured loan

[justbroke]

My question are you responsible for paying whole amount like a swcured loan

See my response above. It depends! It depends on whether the lien is avoidable.