Understanding The Difference Between Secured And Unsecured Debt
Are you considering a personal bankruptcy filing despite your confusion over what kinds of debt can be eliminated during Chapter 7 or Chapter 13 protection?
Experienced Louisville bankruptcy lawyer Allan E. Dunaway has the facts you need about secured and unsecured debt — and can explain the relationship between your personal bankruptcy case and the effect it will have on debts such as student loans, credit card debt, mortgages, automobile loans and car repossession.
Can The Debt Be Discharged?
At your free initial consultation with the Law Office of Allan E. Dunaway PLC, we will explain which debts can be discharged during Chapter 7 bankruptcy, differentiating between:
Secured debt, debts owed to creditors who may have legal rights to specific collateral. A home loan, for example, is a debt secured by a mortgage against the home. If monthly payments on the loan are not made, the creditor can attempt to foreclose against the home. The same goes for loans to pay off a car or truck; those assets would be in danger of repossession if payments are not made.
Some retail purchases financed by the retailer such as televisions or lawn mowers — “big ticket” items, in other words — are considered secured debt. Typically, secured debt can also carry additional personal liability even when the collateral is repossessed and sold for less than the amount due on the loan.
Unsecured debt, meanwhile, is debt for which the lender did not obtain rights against specific collateral. This kind of debt includes credit card debt, medical debt, unsecured signature loans and unsecured deficiencies after a foreclosure or repossession.
Contact Our Attorney For Confidential Advice You Can Depend On
For answers to your questions about what kinds of debt can be discharged in bankruptcy, effective methods of debt relief and how to rebuild credit so your borrowing power can be restored — part of your life after bankruptcy — contact the Law Office of Allan E. Dunaway PLC, to arrange your free initial consultation. Our law firm is on your side with compassionate, confidential representation, start to finish.
Call us today, toll free, from wherever you are in the greater Louisville metro or Jeffersonville, Indiana, area — . We respond promptly to your email messages too, so please feel free to email us. Our law office is open 8 a.m. to 5 p.m. Evening and weekend hours are available by appointment.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.