Understanding the Difference Between Secured and Unsecured Debt
In the world of finance, there are two kinds of debt: secured and unsecured. Secured debt is money you owe that is backed by some sort of collateral. Your car loan is secured by your car, for example. Unsecured debt is not secured by collateral. Credit cards and medical bills are both good examples of unsecured debt.
So why is it important to know the difference between secured debt and unsecured debt on a website about finding debt relief through consumer bankruptcy? Because the type of debt you have could dictate the type of bankruptcy you choose to file. At the Price Law Firm, our lawyers help clients throughout central Florida to find the debt relief they need through Chapter 7 and Chapter 13 bankruptcy filings.
Choosing the Best Option for Your Financial Circumstances
If you have large amounts of unsecured debt, Chapter 7 bankruptcy may be the better option for you. Chapter 7 allows you to wipe out all of your debt and to walk away without obligation once you receive your discharge.
If you are behind on your mortgage or car payments, you may want to consider Chapter 13 bankruptcy. Chapter 13 allows you to repay any arrearages over a three to five year period and gives you the opportunity to keep your property after the past due amounts have been repaid. We may also be able to modify your mortgage within the Chapter 13 to make your payments as low as possible.
If you find yourself in a situation where you have a lot of unsecured debt and you are behind on your mortgage payments, we can help you with something referred to as a "Chapter 20" bankruptcy where we help you file a Chapter 7 to eliminate the unsecured debt and follow it up with a Chapter 13 to get you the protection you need while you repay the arrearages on your mortgage.
To learn more about your bankruptcy options, contact the Price Law Firm. From our offices in Altamonte Springs in the Orlando-Kissimmee metro area, we represent clients throughout central Florida. To schedule a free consultation with an attorney, call 407-792-3473 or contact us toll free at 866-381-9243.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
