Questions About Your Car Loan, Mortgage or other Secured Debts? Call Our Lawyers Today.
How does the type of debt you owe impact your bankruptcy? A knowledgeable attorney can answer these questions and make all the difference in your situation. For people who are thinking about filing for bankruptcy, one of the most important issues in your bankruptcy involves the types of debt you have incurred. There are two types of debt: secured debt and unsecured debt:
- Secured debt refers to debts that are tied to a specific piece of collateral. For example, a mortgage or an automobile loan is secured debt, since if you fall behind on the payments, your lender has the right to take your home or your car.
Unsecured debts are debts that are not backed up by collateral. Examples of unsecured debts are credit cards, pay day loans, unpaid medical bills and unpaid utility bills. While unsecured creditors cannot take your property, they can still sue you for any unpaid amounts. Once your creditors take a judgment against you, they can garnish your wages, bank accounts and take any number of actions to recover payment.
For more than 20 years, individuals and businesses across Hamilton County, southwest Ohio and northern Kentucky have turned to the law firm of Minnillo Law Group Co., LPA. To arrange your free consultation, call +1-513-723-1600.
Ohio Attorneys Taking On Unsecured Debt and Secured Debt Issues
Generally speaking, Chapter 7 will discharge most types of unsecured debt. Therefore, if your debts are primarily credit cards or medical bills, Chapter 7 may offer the debt relief you need. Certain types of unsecured debt, such as taxes and student loans, can only be discharged under certain circumstances. Some unsecured debts, such as unpaid child support obligations, cannot be discharged under any circumstances.
If you are in default on your secured debts and file Chapter 7, your secured creditors may have the right to take the collateral. Therefore, if you have a home or automobile and want to keep it, you may be better off filing for Chapter 13 bankruptcy. Our law firm will give you clear, candid advice on whether bankruptcy is right for your situation. If bankruptcy is in your best interests, we will give you further advice as to what type of bankruptcy will maximize your debt relief.
Contact the Cincinnati Secured Debt Lawyers of Minnillo Law Group Co., LPA
We are a law firm and a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.