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What is the Difference Between Secured and Unsecured Debt?

Sawin & Shea

While bankruptcy itself can also be scary, it is often the best option if you have too much debt to get a handle on your financial situation. 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.

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Who Can Declare Chapter 7 Bankruptcy?

Sawin & Shea

Chapter 7 is the most common form of bankruptcy for individuals and families, and it allows you to discharge many of your unsecured debts within only a few months. Chapter 7 bankruptcy is a form of personal bankruptcy that liquidates filers’ assets to discharge qualifying unsecured debts.

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Bankruptcy Chapter 7 vs 13: Which Is The Best Option?

Debt Free Colorado

Chapter 7 is a disaster when it comes to secured debt. . Chapter 7 will not assist you if your primary source of debt is a mortgage, auto loan, or other kinds of debt. Additionally, not all unsecured debt is dischargeable under Chapter 7. The means test decides who can seek debt relief. medical debt

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Debts That Can’t Be Discharged During Bankruptcy

Sawin & Shea

If you file for Chapter 13 Bankruptcy in Indiana, you will still be obliged to pay something toward your debts; it’s just that you will be given a payment plan that reduces your unsecured debts based upon your ability to pay, that puts you on a manageable schedule, and that holds your creditors at bay while you work on making achievable payments.

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How Much Debt Is Needed to File for Bankruptcy?

Sawin & Shea

Enter Sawin & Shea, LLC – a firm with over 50 years of combined experience in bankruptcy services, dedicated to providing compassionate and non-judgmental representation to individuals and families in need. Dischargeable debts are those that can be eliminated through bankruptcy.

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Discharge in bankruptcy: What does it mean?

Roths Child Law

It is particularly beneficial for individuals who have a significant amount of unsecured debt, such as credit card balances and medical bills. In Chapter 7, several different types of debts are eligible for discharge. Chapter 7 bankruptcy is a popular option because it only takes a few months to complete.

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Discharge in Bankruptcy – Bankruptcy Basics

Sawin & Shea

Chapter 13 Bankruptcy is a Federal Bankruptcy Court-sanctioned debt reorganization plan. You are not allowed to have more than $465,275 of unsecured debt (such as credit card or medical debt) or more than $1,395,875 of secured debt (such as a house, property, or vehicle). Personal loans.