What Is Considered Unsecured Debt in Bankruptcy?
Unsecured debt is debt that is not secured by a piece of property such as a car or a house that the creditor could reclaim if the debt is not paid. Examples of unsecured debt are:
Whereas a creditor would have the power to repossess a car if you do not pay your car loans, a credit card company does not have the power to reclaim what you purchased with the credit card. Medical providers do not have the power to reclaim the care you were provided. Schools cannot reclaim your education.
At Rothschild & Ausbrooks, PLLC, we know that what you really want to know is whether bankruptcy will help you get rid of your unsecured debt. For the most part, bankruptcy is extremely effective at eliminating unsecured debt. Our attorneys have more than three decades of experience helping people in Nashville and throughout Tennessee. You can be confident in our ability to use bankruptcy to help you overcome your debt.
Is All Unsecured Debt Treated Equally?
While bankruptcy tends to make short work of most unsecured debt, not all unsecured debt is treated the same way. You will likely be able to get rid of your credit card debt and your medical debt. However, your student loan may not be discharged in bankruptcy. Our lawyers will educate you about your options and how they will impact your debts.
One important fact to keep in mind is that, if there are debts that remain after bankruptcy, you will likely find them a lot less challenging to pay off with all of your other debts eliminated.
Contact Us for a Free Bankruptcy Consultation
Please contact Rothschild & Ausbrooks, PLLC, today to get answers about unsecured debts in bankruptcy.