What Does "Secured Debt" Mean?

If you are facing bankruptcy, it is important to know what your secured and unsecured debts are. Understanding the difference between secured and unsecured debt can be confusing. At Nowack & Olson, our South Florida bankruptcy lawyers are well-versed in different types of debt and how to eliminate them.

We have helped thousands of people find freedom from secured debts through bankruptcy. Call 888-813-4737 today to get started on obtaining freedom from your debts. Se habla español.

How a certain debt is classified depends on several factors. Simply put, secured debt is any debt that is secured by collateral. In other words, if the debt is tied to something that a creditor can take away, the debt is secured. Some common examples of secured debt are:

  • Home mortgage debt
  • Auto loans
  • Credit used to buy expensive items like appliances, furniture and jewelry
  • Store-specific credit card debt

You Deserve A Second Chance

You have options for dealing with secured debt in bankruptcy. Depending on your unique circumstances, you can deal with secured debt in several ways as part of the bankruptcy process. You may choose to repay the debt over time under your repayment plan in Chapter 13, return the collateral or, in some cases, discharge the debt in Chapter 7.

Even if a creditor repossesses the property secured by a loan, you can still be held liable for any remaining deficiency. Bankruptcy removes your personal liability for secured debt, protecting you from subsequent lawsuits or creditor harassment.

Schedule Your Free Consultation Today

America is the land of second chances, and no one should hesitate to take advantage of an opportunity for a clean slate. Bankruptcy is a legally and socially recognized tool for recognizing, correcting and letting go of past mistakes.

To learn more about your options for getting rid of secured debt, please contact Nowack & Olson by email or call us at 888-813-4737. Our attorneys look forward to helping you embrace a second chance. With multiple office locations in Fort Lauderdale, Miami, Boca Raton and Jupiter, you are never far from experienced help.