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Bankruptcy Help For Everyday People

Unsecured & Secured Debts

If you are struggling with debt problems and you’re looking into the possibility of bankruptcy, you will surely come across some complicated financial terms and concepts. One of the first such concepts you will face is the difference between secured debt and unsecured debt.

Do not let the complicated financial terms intimidate you, and do not handle these matters alone. With our competitive flat-rate fees and our more than 40 years of combined legal experience, the North Carolina unsecured debt attorneys of Wootton & Wootton, P.C., can help you through the bankruptcy process.

Call our office in Durham at 919-794-8660 or email us today for a free consultation!

Secured Debt

A secured loan, as its name suggests, is a loan that has ‘security’ for the lender, something that the lender can take from the debtor if the debtor is not paying the loan according to the lending agreement.

Usually a secured debt is secured by the asset for which the loan was issued. So, for example, most car loans are secured by the car itself. When the loan is not being paid off according to the lending agreement, the lender then has the right to regain possession of the car. Similarly, when a home mortgage is not being paid by the debtor, the lender can foreclose on the home.

As a general rule, most secured debts cannot be discharged outright through bankruptcy. However, these debts can be reorganized through a Chapter 13 bankruptcy, and some secured debts can be exempted from the bankruptcy process in North Carolina.

Unsecured Debt

Conversely, unsecured debt is not backed by any asset. This means that there is nothing the lender can attach to — or take from the borrower — for compensation if the borrower isn’t paying. Examples of unsecured debt include:

As a general rule, Chapter 7 bankruptcy will wipe out most unsecured debt and give you a fresh start. There are exceptions, of course. Some tax debt, for example, could be unsecured and dischargeable through bankruptcy, but not all tax debt. Work with our experienced lawyers, and we will help you determine which debts can be discharged, stop foreclosure, stop repossession and file for bankruptcy.

Contact A Henderson Secured Debts Attorney ∙ 919-794-8660

Call our North Carolina lawyers at 919-794-8660 or contact us online to schedule a free initial consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.