Tag Archives: bankruptcy lawyers

Bankruptcy: Secured vs. Unsecured Debt

Many people, when going through Bankruptcy, have common questions about the different terms encountered while going through the Bankruptcy process. Understanding the difference between Unsecured and Secured Debt can be confusing, and it is important to be well informed when considering whether or not to file for Bankruptcy.

Secured Debt is debt that has a security interest or collateral tied to the agreement, whereby creditors can repossess or foreclose on the collateral if the debtor fails to pay back the loan. Common examples of Secured Debt are home mortgages or car loans; in the event the debtor cannot pay the amount owed, the loan is secured by the ability of the creditor to repossess the home or the car.

On the other hand, unsecured debt is debt that has no collateral attached to the agreement. Instead, unsecured creditors generally rely on your credit score and issue credit based on good faith that you will repay the amount loaned. Common examples of unsecured debt are credit card bills, medical bills, and utilities bills.

Upon filing for Bankruptcy, most Unsecured Debt is discharged with the exception of Student Loans, Child Support and Alimony Payments, Court Fines, DUI judgments against the debtor, and debts incurred by Fraud. The discharge of unsecured debt is a primary benefit of filing for Bankruptcy, and comes along with an Automatic Stay against creditors pursuing their collection efforts.

Understand that filing for Bankruptcy is a complex process with important benefits, consequences, and alternatives to consider. In the event you are considering Bankruptcy, call Blick Law Firm today for help at (813) 931-0840. Schedule a free 15 minute consultation with attorney Michael Blickensderfer. Think quick, call Blick!

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What is Bankruptcy?!

Bankruptcy is a complex area of law and involves many considerations, including whether to file, determining which type of Bankruptcy to file, the use of exemptions, understanding the protections of the Bankruptcy Code and using them to your advantage.

Available Bankruptcy claim types vary depending on your particular position, and understanding the differences is important.

Chapter 7 Bankruptcy is a liquidation proceeding whereby the debtor turns over all non-exempt property to the bankruptcy trustee who then converts it to cash to pay off the creditors. Usually, within four months the debtor then receives a discharge of all dischargeable debts. These dischargeable debts include your credit card debt, old medical bills, utilities bills, unsecured loans, pay day loans, and most other types of unsecured debt.

Chapter 7 Bankruptcy is generally available when the debtor has little property aside from the basic necessities like furniture and clothing; and the debtor has difficulty making payments on basic expenses, or has very little money left after doing so.

The advantage to filing Chapter 7 Bankruptcy is that your unsecured debt is completely eliminated, the process is fairly quick, and the automatic stay that takes place after filing prohibits creditors from making collection efforts.

Chapter 13 Bankruptcy is more of a reorganization process that is available to debtors who have significant equity in a home or other property and want to keep it, or maintain a regular income but simply can’t keep up with the scheduled payments on their debts. Chapter 13 Bankruptcy allows the debtor to restructure the debt to have it paid off over a period of three to five years.

The advantage to filing Chapter 13 Bankruptcy is that you can maintain your property while spreading out the payments, you will have three to five years to catch up on delinquent accounts, and during that time you will make only one monthly payment to the bankruptcy trustee for payment to all creditors involved.

No matter what your situation is, obtaining quality legal consultation from an experienced bankruptcy attorney is beneficial. Contact Blick Law Firm today at (813) 931-0840. Schedule a free 15 minute consultation with attorney Michael Blickensderfer to assess what option is best for you. Think quick, call Blick!

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Secured vs. Unsecured Loans

Many people, when going through Bankruptcy, have common questions about the different terms encountered while going through the Bankruptcy process. Understanding the difference between Unsecured and Secured Debt can be confusing, and it is important to be well informed when considering whether or not to file for Bankruptcy.

Secured Debt is debt that has a security interest or collateral tied to the agreement, whereby creditors can repossess or foreclose on the collateral if the debtor fails to pay back the loan. Common examples of Secured Debt are home mortgages or car loans; in the event the debtor cannot pay the amount owed, the loan is secured by the ability of the creditor to repossess the home or the car.

On the other hand, unsecured debt is debt that has no collateral attached to the agreement. Instead, unsecured creditors generally rely on your credit score and issue credit based on good faith that you will repay the amount loaned. Common examples of unsecured debt are credit card bills, medical bills, and utilities bills.

Upon filing for Bankruptcy, most Unsecured Debt is discharged with the exception of Student Loans, Child Support and Alimony Payments, Court Fines, DUI judgments against the debtor, and debts incurred by Fraud. The discharge of unsecured debt is a primary benefit of filing for Bankruptcy, and comes along with an Automatic Stay against creditors pursuing their collection efforts.

Understand that filing for Bankruptcy is a complex process with important benefits, consequences, and alternatives to consider. In the event you are considering Bankruptcy, call Blick Law Firm today for help at (813) 931-0840. Schedule a free 15 minute consultation with attorney Michael Blickensderfer. Think quick, call Blick!

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Chapter 7 and Chapter 13 Bankruptcy basics

Available Bankruptcy claim types vary depending on your particular situation, and understanding the differences is important.

Chapter 7 Bankruptcy is a liquidation proceeding whereby the debtor turns over all non-exempt property to the bankruptcy trustee who then converts it to cash to pay off the creditors. Usually within four months the debtor then receives a discharge of all dischargeable debts. Usually, these dischargeable debts include your credit card debt, old medical bills, utilities bills, unsecured loans, pay day loans, and most other types of unsecured debt.

Chapter 7 Bankruptcy is generally available when the debtor has little property aside from the basic necessities like furniture and clothing; and the debtor has difficulty making payments on basic expenses, or has very little money left after doing so.

The advantage to filing Chapter 7 Bankruptcy is that your unsecured debt is completely eliminated, the process is fairly quick, and the automatic stay that takes place after filing prohibits creditors from making collection efforts.

Chapter 13 Bankruptcy is more of a reorganization process that is available to debtors who have significant equity in a home or other property and want to keep it, or maintain a regular income but simply can’t keep up with the scheduled payments on their debts. Chapter 13 Bankruptcy allows the debtor to restructure the debt to have it paid off over a period of three to five years.

The advantage to filing Chapter 13 Bankruptcy is that you can maintain your property while spreading out the payments, you will have three to five years to catch up on delinquent accounts, and during that time you will make only one monthly payment to the bankruptcy trustee for payment to all creditors involved.

No matter what your situation is, obtaining quality legal consultation from an experienced bankruptcy attorney is beneficial. Contact Blick Law Firm today at (813) 931-0840. Schedule a free 15 minute consultation with attorney Michael Blickensderfer to assess what option is best for you. Think quick, call Blick!

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