Understanding Unsecured Debts
In a bankruptcy filing, debts may be classified as either secured or unsecured. If a debt is unsecured, this means that a creditor cannot repossess or seize any property in order to secure the debt. While these debts appear beneficial to the debtor because creditors cannot immediately obtain payment or collateral, unsecured debts are frequently the ones that drive an individual into filing for bankruptcy.
When you are facing times of financial difficulty, you need a skilled and dedicated legal representative on your side to help every step of the way. To learn more about how an attorney can help you get through this trying time, contact the Cedar Rapids bankruptcy lawyers of Hong Law, PLC, at (319) 294-5853.
Common Types of Unsecured Debts
Although creditors cannot repossess property for unsecured debts, they can take other action against the debtor. In some cases, they may be able to garnish wages or enter a default judgment against the debtor. Some common unsecured debts include the following:
- Credit card debts
- Medical bills
- Student loans
- Personal loan granted by the bank
A skilled and experienced bankruptcy attorney can help you to determine how a bankruptcy filing might help you to deal with your unsecured debts so that you can escape the current state of financial distress.
If you are facing trying times financially and are dealing with creditors calling you at home or at the office on a daily basis, you need to take action. To learn more about how you can get out of debt, contact a Cedar Rapids bankruptcy lawyer of Hong Law, PLC, by calling (319) 294-5853 today.
Coralville, IA 52241
Phone: (319) 354-1804
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