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Secured vs Unsecured Debt: Everything You Need to Know

Sawin & Shea

However, it is important to note that before bankruptcy is declared, lenders can still come after you to get you to pay off the unsecured debt. They may use collection agencies , or they may sue you (asking the court to garnish wages, take an asset, or put a lien on your home).

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10 Common Questions About Bankruptcy

Debt Free Colorado

The main disadvantage of Chapter 7 bankruptcy is that anything subject to a security interest is not exempt (home, automobile) and can be seized to satisfy the debt connected to the specific item. The following are some indications that you might be a good bankruptcy applicant: Are debt collectors following you around?