Relief for Secured Debt in Arizona
At the beginning of the bankruptcy process, people frequently need to learn about the difference between secured and unsecured debt. Look at it this way: If the debt is attached to some form of collateral that the creditor can take away if the debt is not paid, the debt is considered a secured debt.
The most common examples of secured debt include:
- Home mortgages
- Car loans
- Appliance loans
- Jewelry loans
At the Arizona Law Group of Trezza & Associates, one of the first steps we take is to help you identify the type of debt that you are trying to eliminate. Contact us for a consultation with lawyer Stephen Trezza.
Secured Debt in Chapter 7 and Chapter 13 Bankruptcy
Chapter 7 bankruptcy does not eliminate secured debt. However, it does discharge unsecured debt. With your unsecured debt discharged, you may be able to pay off your secured debt. In some cases, property may have to be liquidated prior to bankruptcy. We will take care to design a strategy that allows you to keep any property you want to keep.
In Chapter 13 bankruptcy, some of your secured debt may be paid off through a debt repayment plan. Secured creditors get priority over unsecured creditors. Over the course of three to five years, you will pay off what you owe. At the end of that period, you will be caught up on all secured debts, and any unsecured debts that were not paid off along the way will be discharged.
Contact Us to Learn More About Unsecured Debt
"What is secured debt in bankruptcy?" Our Tucson attorney can answer that question. Contact us to discuss your options.
