article thumbnail

Secured vs Unsecured Debt: Everything You Need to Know

Sawin & Shea

And possibly the most common question people ask is credit card debt is secured or unsecured. Secured vs Unsecured Debt: What’s the Difference? In broad terms, if a debt is secured, it means it is backed up by collateral property. Unsecured Debt What is unsecured debt?

article thumbnail

What Happens to My Personal Loan After Bankruptcy?

Sawin & Shea

In order to plan out your financial future, you need to understand the difference between secured and unsecured loans. Unsecured loans are loans that don’t have collateral. Common unsecured loans include: Bank loans with no collateral. The most common types of secured personal loans are vehicle loans and home mortgages.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How Much Debt is Needed to File for Bankruptcy?

Sawin & Shea

Firstly, you need to understand the difference between unsecured and secured debts. Unsecured debts refer to debts that don’t have collateral. Some examples of unsecured debts include, but are not limited to, repossessions deficiencies, old lease balances, medical bills, cash advance loans, and credit card debts.

article thumbnail

What is the Difference Between Secured and Unsecured Debt?

Sawin & Shea

However, which type of bankruptcy you file will also depend on what kind of debt you have. Secured and unsecured debt is handled differently in Chapter 7 vs. Chapter 13. What is Secured Debt? Secured debts are a type of debt backed by an asset that is used as collateral.

article thumbnail

Can I File Bankruptcy on Just My Credit Cards?

Sawin & Shea

You aren’t allowed to pick and choose which debt you want the bankruptcy to apply to. Briefly, unsecured debts are not backed by any collateral and include things like credit card balances and unpaid medical bills. However, secured debt means the borrower has put up collateral (e.g.

article thumbnail

Automatic Stay Timeline

Sawin & Shea

For Collections Against Property In a Chapter 7 case, creditors secured by property collateral have some additional options. Within 30 days of filing bankruptcy, a debtor must file a Statement of Intent regarding secured property. This states whether the debtor will surrender, redeem, or reaffirm secured debts.

article thumbnail

Questions to Ask a Chapter 7 Bankruptcy Lawyer Before Filing for Bankruptcy

Sawin & Shea

This includes debts such as credit card balances, medical bills, personal loans, utility bills, back rent, mortgages, and car payments. However, if you used your home or car as a secured debt with a lender, you may need to return the property to the lender if you don’t pay as agreed.