Interchangeability of Unsecured and Secured Debt
Secured and unsecured debts are different but also very closely related. Secured debt is essentially liens against your property (any type of debt backed up by property) and has the highest value. A classic example is a mortgage.
Unsecured debt is different in that it is not backed up against any property; good examples are credit card debt, student loans and medical bills. However, it does not mean that unsecured debt cannot become secured and vice versa. For example, consider the following scenario:
An individual owes a credit card company $10,000. The individual is unable to make payments and the credit card company takes him or her to court. If a judgment is obtained against the individual, the credit card company now has the ability to execute upon that judgment.
This can result in going after personal assets — bank accounts, savings accounts and up to 10 percent of a gross salary. In New Jersey, they can even file a lien against your home or land. Therefore, the unsecured credit card debt becomes secured debt. This is harsh recourse that many people are unaware of.
If the beginnings of this scenario sound familiar, you need legal and financial assistance immediately. I am bankruptcy lawyer Joel R. Spivack. Since 1995, from my office in Cherry Hill, I have helped my clients with their debt problems and bankruptcy filings and obtained effective results. Contact an experienced Cherry Hill secured debt attorney today to schedule your free initial consultation.
Contact Law Office of Joel R. Spivack
Available Monday through Friday, from 8 a.m. to 5 p.m., I am ready to answer your questions about unsecured and secured debt. Located near the Cherry Hill Mall, my office offers free parking. Contact a New Jersey unsecured debt attorney today at 856-324-6165 or toll free at 888-314-6433 for a free initial consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
