What Is Unsecured Debt?
Unsecured debts are any debts that don’t have a form of collateral to protect the lender in the event that the borrower fails to make their payments. Because there is no collateral, if the lender wants to be paid back they must enlist debt collectors or take legal action against a borrower.
Fortunately, if you’re tired of debt collection harassment, bankruptcy could provide a solution for you.
Unsecured debts that can be stayed via bankruptcy include:
- Credit card loans
- Medical bills
- Payday loans
- Utility bills
- Back rent
How Bankruptcy Can Help Deal With Unsecured Debt
If you’ve faced debt collection harassment over unsecured debts, you understand the frustration, paranoia and stress that comes with it. At The Cook Law Firm, we understand how disruptive debt collection harassment is, and that’s why we work so hard to help stop it.
How Does Bankruptcy Provide A Solution?
Unfortunately, most people don’t know that when you successfully file for bankruptcy, debt collection is automatically stayed. This means that debt collectors won’t be able to harass you during the bankruptcy process.
It’s important to note, however, that bankruptcy doesn’t automatically erase your debts — instead, the type of bankruptcy you file will dictate the terms of the process. For Chapter 7 bankruptcy, the bankruptcy court will seize nonexempt property that you own and use that to pay back debts and you’ll have to pay any excess income you earn toward your debts. With Chapter 13 bankruptcy, you get to keep your nonexempt property on the condition that you stay in regulation with a court-ordered payment plan.
At The Cook Law Firm, we’re dedicated to providing the people of Louisiana with the best bankruptcy attorneys not just in the state, but the entire nation. Contact us today to schedule a free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.