Bankruptcy is your best solution to eliminate unsecured debt. Unsecured debt is any debt that is not attached to an asset like credit card debt, medical debt, or unsecured loans. We can illustrate further using credit card debt as an example. When you charge something on a credit card debt, the debt you incur is not attached to any asset. Unlike an automotive loan or real estate debt which is either attached or “secured” to your car or your home. The difference is that if you default on your debt with a secured loan, the lender or bank can take the asset from you to recover some funds.
Secured debt can also become unsecured debt after the asset is recovered by the lender or bank. If you own a car and you stop making payments, the auto loan company can repossess the car from you. In most cases, they will sell the car at auction and the difference between the price that the car sold at auction and the money you owe to the bank will be the deficiency amount which is unsecured debt. In the case of real estate debt, if you foreclose on a home, a 2nd loan or Home Equity Line of Credit changes from a debt that was secured by your home into unsecured debt because you no longer own the home which was the asset that the loan was based on.
In short, unsecured debt is debt that is not attached or no longer attached to an asset. If you qualify for a Chapter 7 bankruptcy, there is no limit to how much unsecured debt you can eliminate by filing for bankruptcy. Chapter 7 bankruptcy will completely eliminate all the unsecured debt you are dealing with. As soon as you retain our office for bankruptcy, we can instruct you on how to stop collections calls from creditors and eliminate all of your unsecured debt. We use your credit report and a questionnaire to find out all of your creditors that you have unsecured debt with and wipe out all the debt.
To get started, call us at 855 257-7671. We have helped clients all over Orange County, Riverside, San Bernardino and Los Angeles.
