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What Debts Can Bankruptcy Eliminate: Examples of Unsecured Debt

Debt Free Colorado

Unsecured debt is a type of debt that is not backed by collateral. Chapter 13 creates a 3-5 year payment plan that lets you keep assets, but you need steady income and must owe less than $465,275 in unsecured debt. These debts have no collateral, so creditors cannot take your property without going to court first.