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Unsecured Debts in Bankruptcy

Unsecured Debts in Bankruptcy

: Richard West Law Office

reportOne of the significant factors that often holds individuals back from filing for bankruptcy is their fear that they will lose all of their assets. They may be financially secure with owning property and a car for example, but their problem is no cash flow. Yes, they could sell their assets to pay their bills, but this would leave them with no residence, or transportation to get to work perhaps.

Most often it is not foolish spending or lack of financial responsibility that leads a person into financial difficulty. It can be unforeseen circumstances, like a pile of medical bills, or the loss of employment. After a short period of time the harassment that comes from the bill collectors is just too much, and the individual has to think about going bankrupt. There are two potential bankruptcy options, with one being the Chapter 7 bankruptcy and the other Chapter 13.

First it is important to look at the debts and determine if they are secured or unsecured.A unsecured debt means that there is nothing that the creditor can take from you legally to pay for the debt. For example, this may be medical bills or credit card debt.A secured debt may be your car or your home.

To put your mind at ease, and to help lift a lot of this financial burden from you a good choice would be to utilize the services of a Springboro bankruptcy attorney. This professional will guide you through the entire process of your bankruptcy starting with which form of bankruptcy is applicable to your situation.