Unsecured Debt Definition
One of the main reasons Debtors file bankruptcy is to get rid of “Unsecured Debt.” If a Debtor is current on all his secured debt, but has unsecured debt that he cannot pay, he would want to file a Chapter 7 if he qualifies. A Chapter 13 will also help get rid of unsecured debt, but sometimes a Debtor might have to pay a percentage back.
Unsecured debt will encompass credit cards, payday loans, medical bill, repossession deficiencies, foreclosure deficiencies, debts turned over to collection companies, signature loans, and the list goes on and on. When a Debtor decides to file bankruptcy, the main goal is to get a discharge and make all the unsecured debt go away.
Other unsecured debt that might cause a Debtor to file bankruptcy would be to certain lawsuits. If a Debtor gets in a car accident and it is his fault, he might owe money to the insurance company. A Debtor might also be sued by a credit card company. Filing bankruptcy will take care of some lawsuits.
If you have questions about filing bankruptcy and live in one of the following areas, please click on the link for more information about bankruptcy:
Bankruptcy information in the San Diego area
Bankruptcy information in the Las Vegas area
Bankruptcy information in the Weatherford area
Please fill out our free evaluation form to determine if bankruptcy is right for you.
