Some creditors in your bankruptcy will likely claim that their loans are secured. For some lenders, it is easy to determine if they really have secured loans, like cars and home mortgages. If you don’t pay those, they will repo your car or foreclose. Some creditors like Kirby and Best Buy and Dell try to claim the debts are secured and want payments or reaffirmations in chapter 7 bankruptcies. My normal response is to tell the creditor to bring a court order and the debtor to keep using it. Why do I take such a hard line?

1. The debts usually aren’t secured in the first place. It takes more than a creditor saying a debt is secured to make it so.
2. Creditors can’t prove the debts are secured. For household good, creditors never record their lien. Without a recorded lien, creditor can’t prove a security interest.
3. It’s not worth it. If it costs $2000 to get a court order for repossession and the thing they are trying to repossess only sells for $500, it would cost a creditor $1500, that it’ll never recover, to repossess the goods.