If you're seeking relief from your unsecured debts, know that personal bankruptcy laws have evolved to protect Americans from aggressive creditors by discharging unsecured debts.
In fact, Chapter 7 bankruptcy was explicitly designed to help struggling consumers eliminate some or all of their unsecured debt. As a result, bankruptcy proceedings often result in the discharge of many kinds of unsecured debt.
To learn more about solving your particular debt problems through U.S. bankruptcy laws, fill out the brief form below and arrange a free, no-obligation consultation with a local bankruptcy attorney.
Briefly, in order for a debt to be secured, your creditor must have some sort of lien on your property. A classic example of this is a home mortgage, where the creditor can take your home if you fall behind on payments.
On the other hand, with unsecured debts, creditors have no such right to your property. However, they may be able to garnish your wages or sue you for payment.
Examples of unsecure debts that bankruptcy may eliminate include:
By successfully filing for personal bankruptcy, you'll immediately be granted an automatic stay, which temporarily prevents your creditors from demanding payments. In addition, the Chapter 7 bankruptcy process can move very quickly, often lasting just a few months.
Under Chapter 7 bankruptcy, the court may eliminate some or all of your unsecured debts, depending on the amount of assets your currently own. Chapter 7 bankruptcy may be a particularly good unsecured debt relief option for people who:
If, however, you have a steady source of income, then Chapter 13 bankruptcy may also offer unsecured debt relief, albeit in a less direct fashion. Under Chapter 13, your debts will be consolidated into a single repayment plan.
If, at the end of this repayment plan, you've stayed on top of your debt payments, some of your unsecured debts may be eliminated. Of course, you will have also eliminated a large portion of your secured debts through the repayment plan, as well.
To learn more about whether bankruptcy could be right for you, contact a local bankruptcy lawyer today and learn more about unsecured relief through personal bankruptcy.