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Repayment terms are generally established prior to services or goods rendered. Payment is generally made with money but can also be made by the exchange of goods. Debtors who fail to make the required payments to creditors may face aggressive collection efforts by third party collection agencies which can be hired by creditors.

Consumers who are unable to meet their debt obligations may explore debt settlement options, Credit Counseling, debt consolidation or bankruptcy which allows, in some cases, for the discharge of certain debts. Creditors can offer secured loans which are secured by assets or "Collateral" which can be sold if the debtor or borrower fails to make payments, allowing the creditor to regain the money lent to the borrower.

Unsecured debts are also available from creditors, but unlike Secured Debt, unsecured debt does not have collateral or a specific asset which can be liquidated to repay the loan to the creditor.

Consumers who file Chapter 7 Bankruptcy may be able to discharge certain unsecured debts. Consumers who file Chapter 13 Bankruptcy must repay creditors, but creditors are paid by priority outlined by U.S. Bankruptcy laws. Payments are made in the following order: 1) administrative claims; 2) priority claims (unpaid wages and tax claims); 3) secured creditor claims; 4) Unsecured creditors; 5) equity claims.

More Help on Creditor

  • Collateral - Individuals who wish to borrow funds may have to offer collateral or assets which are \"pledged\" to the lender as security for the loan amount. If the borrower is unable to repay the loan the collateral can be given or transferred to the lender who issued the loan in order to settle the debt obligation. - read more

  • Credit Counseling - The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 required individuals to take a government approved credit counseling course 180 days prior to filing bankruptcy. - read more

  • Debtor - A debtor is an entity or person who owes a debt or a service to another person or entity which can also be called a Creditor. - read more

  • Secured Debt - Secured debt is any type of debt which is backed by collateral or something of value which can guarantee the secured lender that the amount of the loan can be repaid or the item of value can be repossessed to pay the loan. - read more

Chapter 7 and Chapter 13 Bankruptcy Help

The two most common consumer bankruptcies are Chapter 7 and Chapter 13, our sponsoring lawyers handle these types exclusively so you can be sure you are getting accurate legal advice when you file bankruptcy. Our Bankruptcy attorneys will fight to protect your rights and your property, fight the aggressive and annoying creditors for you, and they can help you keep your home, vehicles and other property.

A lawyer will be committed to getting you debt relief and providing you with valuable information, services and advice to get you a better financial future. There are many convenient locations to make filing bankruptcy or learning about the alternatives we offer, even easier.

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