A Creditor is considered a “secured creditor” if the individual filing for bankruptcy has executed a written voluntary lien that gives the Creditor an interest in the individual’s property.  For example, a finance company holding the title to a vehicle or a bank holding a Deed of Trust/Mortgage against real property would be a secured creditor in a bankruptcy proceeding.  If an individual chooses not to keep the property that the secured creditor has an interest in, then the secured creditor is given the property and the debt is considered paid in full.  For example, if a residence has a mortgage on it and the individual does not wish to keep the residence, the property is returned to the mortgage holder.  If the mortgage holder is not able to sell the property for the amount that the mortgage holder is owed, then the mortgage holder may not sue the individual for any remaining amount due or deficiency.  

If an individual wishes to keep secured property, the individual must continue to make payments on the debt until it is paid in full regardless of the bankruptcy.  A secured creditor may request that the automatic stay be lifted/terminated so that the secured creditor may proceed with the sale of property (for example, to foreclose on a deed of trust/mortgage or repossess a vehicle) if the individual does not continue to make the payments on the debt.