Secured and Unsecured Debts
Debt is the centerpiece of almost every single bankruptcy case filed by individuals, groups, or businesses. While most people realize this fact, fewer understand that not all debts are the same. Depending on the type of creditor or the circumstances under which the loan originated, debt can fall into a number of different categories. Arguably the most important distinction to be considered when looking at a specific debt is whether it is “secured” or “unsecured.”
The details of bankruptcy cases can be confusing and intimidating to many people who are considering filing. The experienced New Orleans bankruptcy attorneys of the Law Office of David D. Kervin, Jr., LLC, can help make sense of the intricacies of the bankruptcy code. Contact us today at 504-599-5906 for a free initial consultation.
Secured vs. Unsecured: What’s the Difference?
There are some very important differences between secured and unsecured debts:
- Secured debts – Secured debts allow the creditor to retrieve property in the event of missed payments. For example, a mortgage lender can take possession of a person’s home if payments are not made. Likewise, a car loan creditor may repossess the vehicle.
- Unsecured debts – Unsecured debts do not allow the creditor to seize any of the debtor’s property as payment if the individual fails to pay what they owe. Almost all credit card debts fall under this category (with some exceptions, including some prepaid cards).
Regardless of whether the majority of your debts are secured or unsecured, bankruptcy may be a good option to consider. To learn more about your legal options, contact the New Orleans bankruptcy attorneys at the Law Office of David D. Kervin, Jr., LLC by calling 504-599-5906 today.