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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 SecuredDebt? Secureddebts are a type of debt backed by an asset that is used as collateral. What is Unsecured Debt?
One of the benefits of declaring bankruptcy is that debtcollectors cannot try to collect on debts that were discharged in bankruptcy. SecuredDebtSecureddebt would include things like: House mortgages Car/vehicle loans Some taxes Loans for furniture/appliances/large electronics Which type of debt is most often secured?
After all, debt collection can be an intricate and sensitive process – one not to be taken lightly – so it is wise to choose an experienced debt collection agency. Look into their success rates as well as client reviews, taking the time to build trust between yourself and the financial debtcollector.
National Debt Relief will assess this by asking to see proof of income and expenses, like bank statements and wage slips. The firm can deal only with unsecured debts, including credit card bills. It can’t tackle secureddebts like auto loans and mortgages. Business debt. IRS debt and back taxes.
When You Have Too Much Debt to Handle Sometimes debt can pile up to the point where making even minimum payments feels impossible with your current income. Credit card balances, personal loans, and other unsecured debts can quickly spiral out of control, especially when combined with secureddebts like a car loan or mortgage.
As experienced collections attorneys, rather than providing a multitude of services to our clients in many different areas of law, we prefer to focus on debt collection and construction litigation with an expanded coverage area, which has resulted in our incredible success in Massachusetts debt collection. At the Law Offices of Alan M.
However, how can you tell if your debt issue calls for such a drastic measure? The following are some indications that you might be a good bankruptcy applicant: Are debtcollectors following you around? What Debts are Discharged in Bankruptcy? Spending money on short-term financial problems will harm your credit too much.
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