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O'Bryan Blog


Do You Want to Get Back on Track with Your Car Loan or Home Mortgage?

For people who are thinking about filing for bankruptcy, one of the most important issues in your bankruptcy involves the types of debt you have incurred. There are two types of debt: secured debt and unsecured debt. Secured debt refers to debts that are tied to a specific piece of collateral. For example, a mortgage or an automobile loan is secured debt, since if you fall behind on the payments, your lender has the right to take your home or your car.

Unsecured debts are debts that are not backed up by collateral. Examples of unsecured debts are credit cards, unpaid medical bills and unpaid utility bills . While unsecured creditors cannot take your property, they can still sue you for any unpaid amounts. Once your creditors take a judgment against you, they can garnish your wages, bank accounts and take any number of actions to recover payment.

How does the type of debt you owe impact your bankruptcy? A knowledgeable attorney can answer these questions and make all the difference in your situation. For more than 15 years, individuals and businesses across Hamilton County and Southwest Ohio and have turned to the law firm of O'Bryan Law Offices.

Kentucky and Southern Indiana Attorneys Taking On Unsecured Debt and Secured Debt Issues

Generally speaking, Chapter 7 will discharge most types of unsecured debt. Therefore, if your debts are primarily credit cards or medical bills, Chapter 7 may offer the debt relief you need. Certain types of unsecured debt, such as taxes and student loans, can only be discharged under certain circumstances. Some unsecured debts, such as unpaid child support obligations, cannot be discharged under any circumstances.

If you are in default on your secured debts and file Chapter 7, your secured creditors may have the right to take the collateral. Therefore, if you have a home or automobile and want to keep it, you may be better off filing for Chapter 13 bankruptcy. Our law firm will give you clear, candid advice on whether bankruptcy is right for your situation. If bankruptcy is in your best interests, we will give you further advice as to what type of bankruptcy will maximize your debt relief.

Contact the Louisville Bankruptcy Lawyers of O'Bryan Law Offices. We offer a free initial consultation. Call our Louisville office at 502-400-4020 or email us today.

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