Secured Debt and BankruptcyExpired
Secured debt is debt that you owe and is backed by an asset of yours, such as a house or a car...
There are two types of debt, secured and unsecured. Today we will talk about secured debt, what it means and what happens if you file for bankruptcy.
Secured debt is debt that you owe and is backed by an asset of yours, such as a house or a car. If you have a secured debt, your creditor can sell the asset if you default on the loan, in order to pay the remaining balance of the loan. A good example in this case would be a car loan. Your secured debt would be the car loan and the asset to the creditor would be the car. If you defaulted on your payments, your creditor could force a sale of the car to repay what you owe them.
When you file for Chapter 7 bankruptcy, it will eliminate you having to pay your secured debt to your creditor. Unfortunately, it does not prevent your creditors from taking your property because you defaulted. But, your obligation to pay will be discharged.
Contact mclawgroup.net for a more detailed explanation what happens to your secured debt in bankruptcy.