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:
Credit Card Loans
Pay Day Loans
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 non-exempt 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. And with Chapter 13 bankruptcy, you get to keep your non-exempt property on the condition that you stay in regulation with a court-ordered payment plan.
The Cook Law Firm
While bankruptcy will look a little bit different for every person who experiences it, it’s imperative to understand that it’s here to help you get a hold on your finances and overcome your debts. Many factors can affect and dictate your bankruptcy process, and that’s why it’s so important to have an experienced team of legal experts by your side to ensure that the process is done right and fairly.
The Cook Law Firm serves the great state of Louisiana, and will be more than happy to help you. If you’re tired of suffering at the hands of debt collectors or simply want to obtain a greater understanding of what bankruptcy is and what it can do for you, contact us today!
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.
Please reach out to us right away if you have any questions or think that bankruptcy could be a solution for you.