In various types of personal bankruptcy, it is extremely important to be able to differentiate between two types of debts: secured and unsecured. The manner in which these types of debts are able to be repaid and how they are viewed by the bankruptcy court varies greatly, as secured debts are unable to be discharged through any type of bankruptcy proceedings. In addition, there are different ways in which a creditor is permitted to seek out collections on these debts even when you are not filing for bankruptcy.
Examining your debts and understanding how bankruptcy law applies to the different amounts owed to different creditors is a complex undertaking, but our Houston bankruptcy attorneys at the Russell Van Beustring P.C., have the expertise and experience to effectively guide and advise you of the proper course of action when you are considering bankruptcy. To learn more about your legal options, call us today at 713-973-6650.
Types of Secured Debts
Secured debts are referred to as liens and can be divided into the following two categories:
- Voluntary liens – these types of debts are secured through an agreement between you and the lender. Mortgages and car loans are the most common examples of this, but a voluntary lien may also be signed against any real property for any debt owed.
- Involuntary liens – an involuntary lien is applied to you by order of law rather than an agreement you have made. These most commonly include taxes and legal judgments against you.
While creditors holding unsecured debts have few options outside of selling debt to collection agencies for collecting, the creditor for a secured debt can take actions such as repossession, foreclosure, or court action against the debtor. In this situation, the best option may be to contact an experienced bankruptcy attorney.
At the Russell Van Beustring P.C., we have decades of experience advising debtors on the best way to manage their finances through the bankruptcy system, and our legal team will work diligently to ensure you get the fresh start you need. For a free consultation to discuss the details of your case, call a Houston bankruptcy lawyer today at 713-973-6650.