Memphis Debt Relief Lawyer: Secured And Unsecured Debts

The Difference Between Secured And Unsecured Debts

If you are thinking about filing for bankruptcy, it is important that you understand the difference between secured and unsecured debts. A creditor is "secured" if it has taken a mortgage or other lien on property as collateral for a loan. Common examples of secured debts are home loans and auto loans. By contrast, unsecured debts are those not secured by collateral, such as credit card debts and medical bills.

Bankruptcy treats secured and unsecured debts in different ways:

  • Unsecured debts may be discharged with a Chapter 7 bankruptcy. Chapter 13 bankruptcy will also typically result in a discharge of unsecured debts, but only after the completion of a Chapter 13 debt repayment plan that typically lasts for 36 to 60 months.
  • With a Chapter 7 bankruptcy, you can reaffirm secured debts, but you must keep making payments on the debts.
  • Bankruptcy can eliminate your obligation to pay any additional money on a secured debt if you decide to give back the property. But you generally cannot keep secured property unless you continue to pay the debt. Limited exceptions apply. For example, you may be able to strip a second mortgage lien with a Chapter 13 bankruptcy in limited circumstances and still keep your home.
  • If you are eligible for Chapter 13 bankruptcy, you can force secured creditors to take payments over time in the bankruptcy process (rather than making immediate payment in one lump-sum for past-due debts)

Get Help From An Experienced Bankruptcy Lawyer

I am attorney Steven F. Bilsky, and I am here to help. I can provide the sound advice and experienced representation you require. If you want to learn more about the difference between secured and unsecured debts, I offer a free consultation to answer your questions. To schedule your consultation, contact my law office in Memphis, Tennessee.

Put My Experience To Work For You

I have more than 30 years of experience in bankruptcy law. I have helped thousands of clients obtain debt relief. I practice exclusively in bankruptcy law to provide the sound advice and knowledgeable representation you require. As my client, you will have a strong advocate on your side.

Contact A Tennessee Unsecured And Secured Debt Attorney

You do not have to face your debt problems alone. I am here to help. I serve clients throughout the Memphis metropolitan area. To schedule a free consultation with a Memphis secured and unsecured debt attorney, contact my law office at 901-236-0572 or 888-336-3691. You may also contact my office by email.

The Law Office of Steven F. Bilsky is a debt relief agency that helps people file for bankruptcy relief under the Bankruptcy Code.