Unsecured debt is represented by monies borrowed or products purchased on credit based only on a borrower’s independent ability to repay. Credit cards and school loans constitute a huge part of this subset. This type of debt is recourse, meaning that the borrower, and all of the borrower’s non-exempt assets upon is liable to satisfy the repayment obligation.
When bankruptcy is filed, recourse, non-secured liabilities, with the notable exception of school loans, are most easily discharged or relieved depending on the bankruptcy chapter filed. Credit cards, deficiency judgments, medical bills, and other like debt goes away. Secured debt, in the overwhelming number of situations, remains on record against the security in spite of any bankruptcy filing.
Little Rock bankruptcy lawyer Greg can help you better understand where a bankruptcy filing will leave you financially. 888-997-3741.
No comments:
Post a Comment