What is a secured debt?
The distinction between a secured debt and an unsecured debt makes an enormous amount of difference in bankruptcy proceedings, as collections and discharges are determined by the security of the debt. A secured debt is any financial obligation you owe which is backed by collateral. This means that the creditor can recover a specific item of value in the event of a default. Some of the most common types of secured debts are car loans and mortgages, where the car or house is the collateral, but various other types of debts may also be secured. A perfected lien also qualifies as a secured debt.
To learn more about how your bankruptcy case may be shaped by the balance of your secured and unsecured debts, do not hesitate to speak with a skilled and experienced attorney. Contact the Houston bankruptcy lawyers at the Russell Van Beustring P.C., by calling 713-973-6650 today.