Secured debts verses unsecured debts in bankruptcy

A secured debt is a debt that you owe that is secured by collateral such as a car loan, mortgage or boat loan.  The debt can be tied to a specific item that can be seized or repossessed if you do not pay the debt.  An unsecured debt is not linked to an asset and they include credit cards and medical bills.  Both debts are included in bankruptcy; however, the debts are handled differently depending on the chapter of bankruptcy filed and if you want to retain the asset.

For more information about how each of these debts are handled in a Chapter 7 bankruptcy case verses a Chapter 13 bankruptcy case read, “Secured and Unsecured Debt: What’s the Difference in Bankruptcy?”