So you’re owed money by somebody in a bankruptcy,
and you’ve been told you have a secured claim. What is a secured claim in bankruptcy? My
name is Andy Forman, and I’m a consumer and business bankruptcy lawyer in Tampa, Florida.
And I help people answer this question every day. A secured claim means that you’re secured
to a specific item or items of the debtor’s property. Maybe you’re a bank who holds a
lien on a motor vehicle, or you’re a lender who has a lien on a business’s accounts receivable.
In order to protect that claim, you’ll be required to file a form known as a proof of
claim, which is furnished by the bankruptcy court. You’ll fill in the appropriate areas,
and you’ll attach the documentation establishing your secured claim; perhaps a copy of the
title, the security agreement, the pledge of the accounts receivable, whatever documentation
you have that establishes your secured claim. Typically when you hold a secured claim, you’re
going to be allowed to repossess that claim if the debtor does not want to pay you during
the bankruptcy. You’re entitled to be adequately protected, but you’ll need to get legal advice
to find out the real depth and safety of your secured claim. My name is Andy Forman. Good
luck enforcing your secured claim in bankruptcy.