Secured Debt is backed by an asset, such as a vehicle or expensive electronics.
If an item can be repossessed, consider it secured debt.
Unsecured Debt is not secured by collateral, so the lender can’t just come in and repossess the item behind the loan.
Credit cards are one form of unsecured debt that is commonly discharged through bankruptcy. Medical bills are another type of unsecured debt.
Other forms of unsecured debt, like child support or student loans, fall into the category of Priority Debt.
Priority Debts are unsecured debt that can’t be discharged in bankruptcy, but they can be reorganized and your repayment made easier.
Learn more about how Bankruptcy can help you by calling the attorneys at Zelenitz, Shapiro & D’Agostino today at 718-599-1111.