How are secured creditors dealt with in a chapter 7 bankruptcy case?
Secured creditors are creditors with valid mortgages or liens against property of the debtor. Property that is encumbered by a valid mortgage or lien is called secured property. If you wish to retain the collateral securing a debt, you may either reaffirm on the debt or propose to redeem the property for its current value. Liens survive bankruptcy unless they are avoided during the case.
