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What is the Difference Between Secured and Unsecured Debt?

Sawin & Shea

However, if you file for bankruptcy, it can put a pause on debt collection, including actions by secured creditors. In a Chapter 7 you will be given a choice to either allow secured creditors to seize your collateral or continue to make payments until the debt is paid off.

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Top 10 Changes to Consumer Bankruptcy Proposed in the Consumer Bankruptcy Reform Act of 2020

Collection Industry News

Secured creditors retain their liens until receipt of the full amounts owed as of the plans’ effective dates. Consumers have either 15 years or five years after the maturity date, whichever is longer, to make payments toward secured debts.