Bankruptcy doesn't have to be something bad.
It can actually be the start of something good.
Your situation is unique, and it's personal.
Your attorney should be as well.

Secured and Unsecured Debts

If you are struggling with debt or are considering filing for bankruptcy, then you should familiarize yourself with the terms secured and unsecured debt. By understanding these concepts, you can better control your situation and restore yourself to a sound financial standing.

Secured debts are those that are backed by some sort of physical property or product (otherwise known as collateral). For example, a home mortgage is backed by the actual house itself. If you default on the loan, then your creditor will seize your home. Other examples of secured debts include car loans, RV loans, and some high-end electronics loans.

Unsecured debts are not backed by collateral. If you fail to make your payments on an unsecured debt, then there is no item that the creditor can seize for sale and recovery of lost money. Credit card, medical bills, and personal loans are all considered unsecured debts.

How does filing for bankruptcy affect my debts?

Filing for either Chapter 7 or Chapter 13 bankruptcy will affect your debts. A successful Chapter 7 filing should eliminate all of your unsecured debts. Your secured debts will be paid off through the liquidation and sale of non-exempt personal belongings.

A successful Chapter 13 filing, on the other hand, will not eliminate your unsecured debts. They will either be reduced or remain unchanged. Your secured debts must still be paid off in full, but your repayment plan will be restructured. The payment period will be lengthened to anywhere from 3 to 5 years, resulting in a reduction in the amount of your monthly payments.

Contact Us

If you would like to learn more about secured and unsecured debts, or if you are considering filing for bankruptcy, then Birmingham bankruptcy lawyer Paula Greenway can help. Contact her today by calling (205) 324-4000.

"When I had my power cut off because I just didn't have the money to pay the power bill, a friend suggested I call Paula Greenway. From the moment I walked in her office I felt like a burden was lifted from my shoulders."
Robin M
"I would just like to say that I was impressed by the staff of Greenway Bankruptcy Law, LLC and their attention to professionalism. They made the bankruptcy process not only pleasant but simple."
Jennifer S.
I can't tell how comforting it is to know your attorney is working on your case. I would and have recommended their service to friend and associates."Ed H.
"I would like to thank Greenway Bankruptcy Law, LLC for the way in which they handled my bankruptcy case."
Robert M.
Schedule an Appointment
In the News

Greenway Bankruptcy Law, LLC
505 20th St N #1220
Birmingham, AL, 35203
Phone: (205) 324-4000
Tuscaloosa: (205) 737-3350
Gadsden: (256) 467-6650

home  |  firm profile  |  practice areas  |  articles  |  faqs  |  blog  |  contact us  |  evaluation  |  sitemap  |  Log in
Greenway Bankruptcy Law, LLC All rights reserved. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. The following language is required pursuant to Rule 7.2, Alabama Rules of Professional Conduct. No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

Greenway Bankruptcy Law, LLC 505 20th St N #1220, Birmingham, AL, 35203 | Phone Number: (205) 324-4000