NOTE: You must include all owed debts in your bankruptcy. It does not matter who you owe. All debts must be listed!
This debt is typically in the form of mortgage loans and auto loans. But it can also be loans for personal property such as furniture. In these type of loans the lender either takes an interest in the property that you purchased using the loan, or you give the creditor interest in property that you already own in order to secure the loan.
These type of loans create to types of liability to the loan:
1. Personal Liability: means that they can sue you for any failure to pay the debts based on terms of the loan.
2. Property Lien: this means that the creditor has an interest in the property that secured the loan and the creditor can take actions to repossess the property.
Bankruptcy often discharges personal liability to the loan; however, it rarely removes the creditor’s right to the property.
Various types of Secured Debt:
• Auto Loans
• Furniture Loans
• Real Estate Taxes
• Some sewer utilities
• Judgment Liens
• Mobile Home loan
NOTE: This is just a sample of the most common secured loans.
This debt is typically in the form of back income tax, personal property taxes, and child support. This kind of debt is generally not dischargeable in bankruptcy. In fact, some people actually opt to enter into a Chapter 13 Bankruptcy to have the opportunity to repay these debts and obtain a true clean start.
Various types of Priority Debt:
• Back Taxes owed to IRS or State tax agency
• Back Child Support
• Personal Property taxes
• Sales tax
NOTE: This is just a sample of the most common priority debts.
This debt is usually in the form of credit cards, medical bills, payday loans, utility bills, and student loans. Most unsecured debts are dischargeable; however, there are some limited exceptions.
Various types of General Unsecured Debt:
• Credit Cards
• Personal Loans
• Payday Loans
• Utility Bills
• Cell Phone Bills
• Medical Bills
• Deficiency Balance due to repossessed vehicle or foreclosed real estate.
NOTE: This is just a sample of most common unsecured debts.