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If you’re struggling with debt and considering bankruptcy, speaking with a bankruptcy lawyer can help you determine your best options and give you some clarity on how the process works. At Sawin & Shea, LLC, our Chapter 7 Bankruptcy lawyers have helped clients just like you in the Indianapolis and surrounding areas.
If you fail to repay an unsecured personal loan, the lender cannot repossess your assets. Personal loans from lenders that you know, such as acquaintances, co-workers, employers, friends, and family. In addition to unsecured personal loans, there are other types of unsecured debts, such as: Medical bills. Credit card debts.
If you have a large amount of credit card debt or high medical costs that you can’t pay, Chapter 7 may allow you to start again. Chapter 7 is a disaster when it comes to secureddebt. . Chapter 7 will not assist you if your primary source of debt is a mortgage, auto loan, or other kinds of debt.
In this blog, you’ll learn about whether you can reaffirm your debt in Ch. Have additional questions regarding bankruptcy or reaffirming secureddebts? Entering a reaffirmation agreement is a way that debtors in a Chapter 7 bankruptcy keep collateral attached to secureddebt like houses or cars.
Briefly, unsecured debts are not backed by any collateral and include things like credit card balances and unpaid medical bills. However, secureddebt means the borrower has put up collateral (e.g. Do I Need a Lawyer to File for Bankruptcy? Are There Lawyers Who Can Help with Bankruptcy? The answer is yes.
What is Unsecured Debt? Unsecured debt is money you owe not tied to any specific asset. This means the lender can take no property, like a house or car if you do not pay. Instead, lenders rely on your promise to pay back the money. Unsecured debt can be stressful. Filing for bankruptcy can be a big decision.
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.
Chapter 13 takes into account your financial situation before filing for bankruptcy, too, but mainly focuses on developing a payment plan to address secureddebt (which includes things like your house or car). What’s Wrong with Repaying Family or Friends Before I File for Bankruptcy?
For experienced bankruptcy lawyers in Indiana, contact Sawin & Shea, LLC. Chapter 7 is also known as liquidation bankruptcy because it involves liquidating (selling off) non-exempt assets belonging to the debtor to repay creditors and lenders. What Is Chapter 7 Bankruptcy? The post What Assets Do You Lose in Chapter 7?
Find Out the 10 Common Questions About Bankruptcy with Colorado Bankruptcy Lawyers. Through a legal process called bankruptcy, some people who are unable to pay their debts can start over financially, either temporarily or permanently. Those who are no longer able to pay their debts can, however, start over through a legal process.
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