In the schedules submitted by debtors in bankruptcy cases, debts must be listed categorized by whether the debt is unsecured, secured, or a priority debt, which are defined by federal bankruptcy law. An unsecured debt is an obligation that is not collateralized by a lien on any of the debtor’s assets. In contrast, a loan to buy real property or a motor vehicle is typically collateralized by the purchased property (home, car). If the borrower defaults on the loan, the creditor may take the property to satisfy as much of the debt as possible.
When no collateral exists for a loan or extension of credit, there is, of course, an existing legal obligation to repay them. If a borrower fails to make payments on an unsecured debt, it will not result in the creditor taking any property. An unsecured creditor must bring a lawsuit in civil court and obtain a favorable judgment before it may take any property. Once a creditor receives a judgment, it may garnish wages or a bank account, or attach real or personal property.
Examples of general unsecured debts include:
- credit card accounts;
- student loans;
- utility bills;
- medical bills;
- personal loans;
- past due rent.
Lehman Franklin and Kimberly Ward offer caring, knowledgeable, experienced representation on behalf of all those who must file bankruptcy to solve their financial problems. Don’t hire just any lawyer to defend your case. You need a lawyer who has years of legal experience. If you’re in need of our services and would like a FREE consultation, give us a call, send us an email or simply check us out online.
Lehman Franklin, P.C. is located at 127 North Main Street in Statesboro, GA (30458). We proudly serve Bulloch County, as well as the surrounding counties of Chatham, Candler, Evans, Bryan, Effingham, Screven, and Jenkins. Contact our office by telephone at 912-764-9616, by email at firstname.lastname@example.org, or browse our website at hlfranklin.com. We’re available to meet your legal needs Monday through Friday from 8:30 AM until 5:30 PM.