Lockport Bankruptcy Lawyer Discusses Secured And Unsecured Debts

Chapter 7 is for people with little or no assets and a lot of unsecured debt. Unsecured debts are medical bills, personal loans, credit cards, things where there is nothing that can be taken back. The money is either gone on the credit card or the service was already provided by the dentist or the doctor. There is nothing that you can give back. That is unsecured. Secured is something like a car, a house, jewelry, furniture, electronics; something where if you don’t pay, the creditor can come back and say, well then give me the item back then. I have a security interest in it, give it back.  Advising on secured versus unsecured debt is an important aspect of advising clients.  There is a misconception that someone with secured debt cannot file for Chapter 7.  It even goes further in some cases where the thought is that if you own a home, you can only file Chapter 13 bankruptcy.  Obviously, this is not the case and people with secured debt and/or unsecured debt can qualify under either chapter of the bankruptcy code.

See Additional Information at Lockport Bankruptcy Attorney or call (847) 520-8100.