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Secured Debt Options

Enlist a Denver Bankruptcy Attorney

If the debtor has consumer debts which are secured by property, such as a mortgage or car loan, then the debtor has several options. These must typically be exercised within 45 days after the bankruptcy filing, which is reflected in a paper filed with the bankruptcy court called a statement of intention:


  • Surrender the collateral to the secured creditor, make no more payments and wipe out the debt.
  • Formally reaffirm the debt via a written affirmation agreement, which is filed with the court. In this instance, the debtor keeps the collateral and continues making payments in either the full amount or some agreed-upon reduced amount.
  • Redeem the collateral from the debt by paying the secured creditor the fair market value of collateral.
  • Avoid the lien, with the debtor keeping the property and making no further payments. This typically can
    be done only in cases where the debtor has put up household goods as collateral for a loan.


It is possible for the debtor to keep the collateral, keep making the payments and not officially reaffirm the debt. In this instance, if the debtor defaults, the secured creditor will have the right to proceed with repossession of the property, but will not be allowed to hold the debtor personally liable if the property is not of sufficient value to pay off the debt.

If you have more questions about secure debt options, our Denver bankruptcy lawyers are here to help. Contact us today at (303) 893-0833 to start pursuing the debt-free future you deserve.