A Chapter 7, sometimes called “straight bankruptcy,” provides you with a number of important advantages with your secured debts. Those are debts in which your obligation to pay is secured by collateral, specifically by certain rights that the creditor has over your collateral. If you do not stay current on the agreed payments on the debt, the … [Read more...]
General Unsecured, Secured, and Priority Debts
All of bankruptcy makes a lot more sense if you know which of your debts fit within which of these three categories of debts. Bankruptcy law generally treats your creditors the same, except when those creditors are legally different. A handy way to describe how creditors are legally different is to say whether a debt is a “general unsecured debt,” … [Read more...]