Can My Pool Loan be Discharged in Bankruptcy?
Pool loans usually get financed through a third-party company, such as a bank or credit union not through the pool contractor themselves. On credit reports the debt is usually listed as an unsecured debt which is the same as any type of credit card debt. However, the actual loan agreement/contract always needs to be reviewed.
It is commonplace for the pool contract to state that there will be a UCC filing if the loan becomes 30+ days past due. A UCC filing (Uniform commercial code financing statement) is a document filed by the creditor with the Florida Secretary of State to assert their security interest in the collateral (pool). A UCC lien cannot be removed or avoided.
UCC liens can include everything from real property (homestead or rental properties) or other personal property. A UCC lien will prevent you from being able to sell your property or use your property as collateral to obtain another loan such as a second mortgage or refinance of your current loan.
Unfortunately, it is something that will likely have to be paid. A bankruptcy may still be helpful because you can eliminate other debt like credit card debt or personal loans so you can focus on staying current with your secured debt. If you are having difficulty navigating whether something is a secured or unsecured debt it is good to speak with a bankruptcy attorney to figure out what can be discharged in bankruptcy and what you should continue to pay.
