Central Arkansas Unsecured Debt Attorneys
In bankruptcy, not all debts are treated equally. Before filing, it is important that your lawyer carefully reviews all of your debts to ensure that the type of bankruptcy filed is the most effective way to eliminate your debts and meet your specific needs. At the Pray Law Firm in North Little Rock, Arkansas, we take pride in creating effective and personalized debt relief strategies for all of our clients.
Secured Debts and Bankruptcy
Secured debts are those in which the creditor maintains a lien on property and can take it back if the debt is not paid. Car loans are secured debts, because lenders can repossess your car if you do not pay. Home mortgages are secured debts, because lenders can foreclose on your home if you do not pay. You have a few options when it comes to dealing with secured debts:
- You can give the property back to the creditor and completely get rid of the debt
- You can file Chapter 7 bankruptcy and reaffirm the secured debt, which means the debt will survive the bankruptcy, and you will need to catch up and continue making payments
- You can file Chapter 13 bankruptcy and pay past-due secured debt as part of the repayment plan and continue making payments going forward
Unsecured Debts and Bankruptcy
Unsecured debts are debts that are not secured by any property. These include credit card debt and medical bills. These debts are eradicated in Chapter 7 bankruptcy and paid off in a repayment plan in Chapter 13 bankruptcy. In many cases, the elimination of unsecured debts makes it much easier for people to manage any remaining secured debts.
Priority Debts
Certain debts simply cannot be discharged in bankruptcy. They cannot be eliminated in Chapter 7 bankruptcy, but they can be paid in full as part of a Chapter 13 repayment plan. Priority debts include past-due child support and most tax debt.
Contact Us for a Free Consultation
To speak with one of the North Little Rock secured debt attorneys at our firm, call 501-588-7044, or contact us by e-mail.
