The Difference Between Secured And Unsecured Debt

Bankruptcy deals with different types of debt in different ways. When you choose a lawyer, it is important that you pick someone with the experience to accurately analyze your debt load and come up with the debt relief strategy that is going to have the most positive impact on your financial future.

Attorney Liza A. Greene at the law offices of Laura Dale & Associates, P.C., is one of the select few attorneys to be board-certified in consumer bankruptcy law by the Texas Board of Legal Specialization. She has more than 30 years of experience addressing secured, unsecured and priority debts. You can be confident in her ability to protect your interests.

Unsecured Debt Defined

Unsecured debts are not secured by collateral. Examples of unsecured debts include:

These debts are typically the easiest to eliminate through bankruptcy.

Types Of Secured Debt

Secured debts are those secured by collateral. Your home loan is a secured debt, because your home can be foreclosed upon if you do not pay. Other secured debts include car loans and appliances or furniture purchased on credit at chain retail stores like Best Buy.

Chapter 13 bankruptcy allows you to repay past due secured debts, but if you want to keep the property you must also continue making current payments. Chapter 7 bankruptcy allows you to eliminate unsecured debts which may free up money to satisfy the monthly obligations on your secured debts. You are not able to discharge secured debts and keep the collateral.

Priority Debts

Priority debts are generally obligations that cannot be discharged. The most common are income taxes and child support. Liza A. Greene can discuss how bankruptcy can help you satisfy these obligations and potentially save you money by paying them in a Chapter 13 plan.

Liza A. Greene can help you create a bankruptcy strategy that allows you to keep the property that is most important to you.

Schedule A Consultation Today

Contact us to schedule a consultation with a Houston debt attorney.

Liza A. Greene helps people file for bankruptcy and is a debt relief agency as defined by the Bankruptcy Code.

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