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?