What Is a Secured Debt In a Bankruptcy Case?

bankruptcy

What Is a Secured Debt In a Bankruptcy Case?

Debtors must list or “schedule” their debts in bankruptcy cases based on whether the debt is unsecured, secured, or a priority debt. A secured debt is an obligation backed by collateral that a creditor may recover upon default as defined in the security agreement accompanying the purchase. Examples of secured debts include:

  • mortgages;
  • home equity loans;
  • motor vehicle loans;
  • tax liens;
  • judgment liens;
  • mechanic’s or materialman’s liens; and
  • loans for large appliances and electronics such as televisions.

Bankruptcy debtors must list:

  • the amount of the debt;
  • the creditor’s name and mailing address;
  • the date of the debt;
  • any applicable account number;
  • whether the debt is contingent, liquidated, or disputed;
  • a description of the property that secures the debt;
  • the type of lien;
  • the value of the collateral, and
  • any of the portion of the debt that would be unsecured after subtracting the value of the collateral from the amount of the debt. If the debt is for $250,000 and the collateral is worth $180,000, then $70,000 of the debt is unsecured.

Secured debts are listed on a debtor’s Schedule “D” which is filed with the U.S. Bankruptcy Court.

Lehman Franklin has helped those seriously affected by financial hardship in the Statesboro community for over 50 years. Along with a capable and dedicated support staff, attorneys H. Lehman Franklin and Kimberly Ward offer quality and zealous representation on behalf of all of their bankruptcy clients. Don’t hire just any bankruptcy lawyer to file your case. You need a lawyer like Lehman Franklin or Kim Ward who have 65 years of collective experience filing bankruptcy cases. 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 info@hlfranklin.com, 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.