Can My Pool Loan be Discharged in Bankruptcy? 

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.


How Can I Keep a Credit Card

How Can I Keep a Credit Card

When you file for bankruptcy, you are required to list all your assets and creditors. You cannot pick and choose which creditors you want to continue to pay and which ones you want to discharge in your bankruptcy.

If you have a zero balance at the time of filing your case, the credit card does not need to be listed. However, your creditors will sometimes close the account even if you do not have a balance because the credit bureaus will notify them that you have filed for bankruptcy.

If keeping one credit line open is important to you, you might want to call the creditor directly and ask if they would close your account or leave it open if you had a zero balance at the time of filing your case.

Additionally, if you have paid any creditor over six hundred dollars, ninety days prior to filing your case that would also need to be listed. If one creditor is paid but not others, that is considered a preferential treatment of that creditor and the trustee could look to that creditor for payment. For example, if you paid one creditor three thousand dollars, ninety days prior to filing your case, the trustee could go after that one creditor for the three thousand dollars to collect and distribute to your other creditors.

The good news is that you can typically get credit very quickly post-filing or open a secured credit line to rebuild your credit. Since you will have more disposable income and no debt after filing, hopefully credit will only need to be used on a limited basis. When you pay your credit lines on time that will definitely help to rebound your credit after filing.

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