Do secured creditors always get paid or get their security back?
The trustee in bankruptcy will make sure that the secured creditor has registered all the proper documentation before you are given the option, in most cases, to either continue making payments to the secured creditor or return the assets to the secured creditor. There have been occasions where secured creditors have not properly registered their documentation. In these cases, the security in question will become an asset of your bankrupt estate. The trustee in bankruptcy is required to seize these assets and liquidate them for the general benefit of your creditors.
