Affordable Bankruptcy Lawyers Answer What Is Secured Debt

Schlyer & Associates, a Northwest Indiana Affordable Bankruptcy law firm answers your bankruptcy questions.  Today we will be discussing:

What is secured debt? Generally speaking, it means you purchased something on credit and you have their property. It is a house, a car or motorcycle.  Those are considered secured debts as long as you still have the property.

What is an unsecured debt? A unsecured debt is a credit card that you can use anywhere in any store.  If you use your VISA or Mastercard to buy CDs or a pair of shoes, the credit card company does not get/keep an interest in that property, it is unsecured.

On the other hand, if you take out a loan for a car, the loan documents specify that the loan is for a car and the creditor retains a security interest in the property until the property is paid off, the loan is secured.

Does it matter if my debt is secured or unsecured if I file bankruptcy? In a bankruptcy, you must decide what you want to do with secured debt.  If you want to keep the property, the house or car, you must make arrangements to continue making your required monthly payment.  This is known as a Reaffirmation.  If you want to keep the house or car, the debt is listed on your bankruptcy and then you can ‘reaffirm” or keep the property by making your payments.

On the other hand, if you no longer want to keep the house or car, you can surrender back the property to the creditor and owe them nothing.  Once the property is surrendered back to the creditor, the remaining balance becomes unsecured and is discharged.

Can I have an example? Sure, if you take out a loan at a place like American General Finance or Beneficial Finance, those debts are unsecured as long as you did not pledge your personal property as collateral to secure the debt. If you did, then the loan is secured by your personal property.  Payday loans are unsecured.

There are many other types of loans, credit cards and debts out there.  Please call us and schedule a free appointment to discuss your Affordable Bankruptcy options with one of our lawyers.  We will  discuss the type of debt you have and we can together figure out the best way for you to proceed.

If you have a great deal of medical debt (bills), credit card, house, car, payday or another other kind of debt and want to discuss your options, please call us at Schlyer & Associates at (219) 757-0225.  We can help you eliminate or reduce your debt.  We offer free face to face consultations in our office.

The attorneys at Schlyer & Associates can help you file Chapter 7 and Chapter 13Affordable Bankruptcy, if you live in Lake County or Porter County, Indiana.  Please feel free to contact us today at (219) 757-0225 if you or your loved one was injured or needs to file bankruptcy.  We are a debt relief agency.

We can help you file Chapter 7 or Chapter 13 Affordable Bankruptcy if you live in the Lake County or Porter County communities of Hammond, East Chicago, Gary, Whiting Munster, Griffith, Highland, Dyer, St. John, Schererville, Cedar Lake, Lake Station, Crown Point, Merrillville, Hobart, New Chicago, Lowell, Lake Dalecarlia, Winfield, Miller, Lake Village, Valparaiso, Hebron, Dune Acres, Kouts, Odgen Dunes, Chesterton, Town of Pines, Portage, Porter, Wheeler, South Haven or Beverly Shores.

We are located at 200 West 80th Place, Merrillville, Indiana 46410.  Our office is located across the street from Eye Care Plus and Spill the Beans gourmet coffee shop.

Please call us today at (219) 757-0225 to schedule a meeting with an Affordable Bankruptcy lawyer today.

Posted by Schlyer & Associates