Why Logan bankruptcy filers need to understand secured debt.
Laws, bankruptcyYour debts are not all the same. Treating them all the same is a mistake.
Long ago, in an attempt to impress my parents, I made dinner for the family, sparing my mother the usual dread and drudgery. I was certain she would be pleased. She was, but her excitement was hindered somewhat when she found I had used her cast iron pot to boil the vegetables in. You see, to me all pots are alike, but any homemaker would tell you differently. It’s the same with debt.
Boiling water in a cast iron pot causes it to rust. Similarly, discharging different kinds of debt has variable consequences. Your debts are not all the same. For the purposes of this entry, let’s explore the differences between secured and unsecured debt.
Secured debts have a physical asset associated with them. Your car loan and home mortgage are secured debts. When you make an agreement with a creditor for a car loan, the car you are purchasing with the loan is specified in the contract. This contract also gives the creditor rights to the car if you stop making your payments. This protects the creditor. This is why your creditors have a claim on your assets during Logan bankruptcy.
Unsecured debts are different, there are no assets associated with them. Credit card and medical bills are common examples of unsecured debt. When debtors stop making payments on unsecured debt, the creditor has only a general claim to the debtor’s assets. These claims are more easily defeated.
The point to take home is this: Logan bankruptcy filers have more success defending against unsecured creditor claims than secured claims.
Debtors who want to find relief through Logan bankruptcy need to consider the amount a relief they need. If only your credit card and medical debts were discharged, would that be enough to get you back on your feet? If you can become financially stable without discharging your car or mortgage debts, than the chance of you losing your car or your home virtually disappears.
It is hard to tell just how much debt relief you need. That’s another thing we can help you with. Our job is to make you financially secure. Fill out a free evaluation form today and let us help.
