Unsecured and secured debt in Centennial and across Colorado can often be confusing. When filing a Chapter 7 or Chapter 13 bankruptcy in Colorado, it’s important to know the difference between unsecured and secured debt as they determine how a creditor can collect your debt. Let’s continue reading to learn the answer to the question “what’s the difference between secured and unsecured debt in Colorado”.
Definition of Unsecured Debt in Aurora, Colorado
In Aurora, Lone Tree and across Colorado, an unsecured debt is defined as debt where a lender doesn’t have collateral against you. In other words, there is no property (such as a home or car) serving as collateral for the debt, that can be taken away if you cannot pay. Though there is no collateral against you, creditors can still find ways to try to get you to pay them. Filing for a Chapter 7 or Chapter 13 bankruptcy will help protect you (with an automatic stay) against creditors’ efforts to attach your property.
Types of Unsecured Debt in Highlands Ranch, Colorado
In Highlands Ranch and Douglas County, some examples of unsecured debt include:
4.Court ordered child support
6.Credit card debt
Most debts in Colorado are unsecured, but you should always check with a knowledgeable bankruptcy lawyer about which of your debts are unsecured and which ones aren’t. For the most part, if you are making payments on the purchase of an item, the seller or lender probably has a security interest in the item purchased until it is paid for in full. This is also called secured debt.
Definition of Secured Debt for Bankruptcy in Littleton, Colorado
In Littleton and Greenwood Village, a secured debt is defined as a debt that is secured by collateral. In the event you don’t pay, the collateral can be repossessed. An example of this would[pullquote align=”right” textalign=”right” width=”40%”]A secured debt is debt that’s secured by collateral.[/pullquote] be if you buy a car and you are making monthly payments. If you fail to make the monthly payments because of excessive debt, your car can be repossessed. Another example would be if you are unable to keep up with your mortgage payments. A lender can foreclose on your property in this event. In both cases, you borrowed to buy the items, so the lender has a security interest in the property, or, it is a secured debt.
Lawyer for Bankruptcy in Parker: Call Today for Secured Debt Bankruptcy Questions
Filing for a Chapter 7 or Chapter 13 bankruptcy in Parker or anywhere else in Colorado can be confusing without the help of a skilled bankruptcy attorney. Depending on your financial situation, an experienced bankruptcy lawyer can help determine which type of filing can grant you the most financial relief and allow you to keep certain property. Call Christian bankruptcy attorney Barry Arrington today to discuss the bankruptcy process and unsecured / secured debt in greater detail.
If you have more questions about unsecured and secured debt in Colorado, contact experienced Colorado bankruptcy lawyer Barry Arrington at 303-205-7870, or submit the “Get Help Now” form. He will fight to give you the best, fresh start possible.
Image Courtesy of lekkyjustdoit / FreeeDigitalPhotos.net