Well, you’ve filed your bankruptcy and you’ve
heard the term purchase money security interest. What in the world is that? My name is Andy
Forman and I’m a business and consumer bankruptcy lawyer in Tampa, Florida and I deal with the
I deal with the issue of purchase money security in the bankruptcies I file. In order to understand
a purchase money security interest, you need to understand the concept of a lien. A lien
is a claim that a creditor has against a specific item of property. In bankruptcy, the company
that loans you money to buy the car, they have a lien on the car. If you went to an
electronic store and bought a plasma T.V on the company account, on the store account
they have the purchase money security interest in that plasma T.V. What that really means
for you is when you have an item that is subject to a purchase money security interest, that
creditor has a right to recover that property from your bankruptcy if you and them cannot
reach agreement on payment of the remaining balance or some compromise of that balance.
There are other types of liens that are not purchase money but the significance of having
a lien is that in your bankruptcy, a creditor that has a lien has a right to that specific
property. I’m Andy Forman, good luck with your bankruptcy.