Most debts can be eliminated by filing a Chapter 7 claim, including medical bills, payday loans, bank loans, and credit card debt.
Difference Between Secured and Unsecured Debt
There are two different types of consumer debt that play a key role in bankruptcy proceedings: secured and unsecured. Secured debt is a loan that is attached to a specific piece of property. The most common example is a mortgage that is secured with the property or home that the loan is used to purchase. The mortgage lender has a security interest in your home, which means if you fail to make a payment, they have the legal right to take the property.
Bankruptcy May Be Able To Help If You:
- Are you struggling to pay monthly household expenses like rent, food, and utilities?
- Are you being harassed by bill collectors?
- Do you use credit cards to pay for living expenses?
- Are you behind on the mortgage and/or car payments?
- Have you received a foreclosure notice?
- Are your wages being garnished?
- Do you have medical bills that aren’t covered by insurance?
- Have you been sued by creditors for unpaid debts?
- Are you dipping into your retirement funds to pay bills?
- Have you tried to negotiate better terms with lenders but with no success?