As a Memphis Chapter 7 lawyer, I meet with people every day who need to know the difference between secured and unsecured debt. The answer can help you prioritize your expenses and decide which type of bankruptcy you need.
An unsecured debt means a debt that’s not connected to a collateral property (a property the bank could take back if you don’t pay). The most common examples include houses and cars. If you can’t pay for your house, the bank can take that house back as collateral on your loan.
Most debts are unsecured. They include:
- credit card debt
- utility bills
- medical bills
- back rent
- and more
Getting Rid of Unsecured Debts Through Bankruptcy
For many Americans, unsecured debt like credit cards and medical bills can easily get way out of hand. Too many of us live paycheck to paycheck and depend on credit to cover emergencies – even medical ones. As a result, the debt may take years to resolve. Not only does the debtor suffer, but the economy suffers as well from millions of Americans struggling to pay back debt with money they don’t have.
Chapter 7 bankruptcy offers a way out. It clears you of unsecured debt so you can start fresh. The federal government created this law to give people relief from their unsecured debt, because they recognize it benefits everyone in the long run.
Contact a Memphis Chapter 7 Lawyer Today
If you have credit card debt, medical bills, or other debt you can’t pay anymore, you need a Memphis Chapter 7 lawyer who knows the law and will make sure your case goes as smoothly as possible. With the right attorney, the process can be very simple.
And our firm offers a special payment plan, so you can file Chapter 7 today for no money down!
To find out if you qualify and to get started, contact us today online or call 901-327-2100. A Memphis Chapter 7 lawyer will help you get started with a free consultation.