Unsecured Debt In Illinois
An unsecured debt is one that is not attached to any physical object that a creditor can foreclose on or repossess. Credit card debt, medical bills, deficiencies, utilities, and signature loans to name just a few, are examples of unsecured debts, which are dischargeable in either Chapter 7 or Chapter 13 bankruptcy.
In a Chapter 7 bankruptcy, unsecured debts may be eliminated altogether with the final discharge. This is one of the primary reasons that many debtors seek to qualify for Chapter 7 bankruptcy.
In a Chapter 13 bankruptcy, unsecured debts will be given a lower priority than secured debts in the required debt repayment plan. The amount or percentage that you have to pay these unsecured debts is dependent upon your assets and your family income. You may end up paying just pennies on the dollar toward your unsecured debts in a Chapter 13 bankruptcy.
Debt Relief Law Firm In Chicago · Debt Consolidation? Attorneys At Edwin L Feld & Associates, LLC, Can Advise You On The Best Forms Of Debt Relief.
Before beginning the process of filing bankruptcy, learn what you need to know about the types of debts that you have, and whether each one is categorized as a secured debt or an unsecured debt. In Illinois, Edwin L Feld & Associates, LLC, is a valuable source of information and help for debtors from throughout the Chicagoland area. To schedule a free consultation with a lawyer at any of our convenient office locations, contact us toll free at 888-645-4357. You may also contact us by email.