Cherry Hill NJ Bankruptcy Lawyer Explains the Differences Between Secured and Unsecured Debt

People who are having trouble keeping up with their bills can be facing many different types of debt. If you are considering seeking debt relief through bankruptcy, it is important to understand the different types of debt and what bankruptcy may or may not be able to do for you with regard to each of them.

I am New Jersey bankruptcy lawyer Joel R. Spivack. My entire practice is dedicated to helping people get back on the right financial path and regain control of their finances. From my office in Cherry Hill, I work to find the right debt relief solution to fit my clients’ needs, including Chapter 7 and Chapter 13 bankruptcy filings or an alternative solution that better suits their situation.

The type of debt you are dealing with will often dictate your approach to seeking relief. The following information provides a brief summary of the types of debt that often bring the most questions from people seeking debt relief.

  • Secured and unsecured debt: Whether your debt is secured or unsecured will often determine which bankruptcy chapter would be best for your needs. I can advise you on the various options, depending on which category your debt falls into.
  • Taxes: If you have unpaid taxes, they may be eligible for discharge in bankruptcy. I will review the circumstances of your case and give you an honest assessment of whether the tax debt can be discharged. If not, I can explain any alternative solutions that may be available.
  • Credit card debt: When finances are tight, credit can often become the primary source of funds. If you are unable to repay the debt, it could cause serious complications in other areas of your life. Chapter 7 bankruptcy can be a good solution for people who are struggling with credit card debt.
  • Medical debt: Nobody plans for a serious illness. Even with employer-provided health insurance, few people are prepared to cover the cost of the uninsured portion. If medical bills are standing between you and financial stability, bankruptcy could provide the solution you need.
  • Motor vehicle surcharges: Motor vehicle surcharges must be repaid in full, but that does not mean that bankruptcy cannot provide any relief. I will explain the various options regarding this type of debt and the best approach to making them as manageable as possible for you.
  • Student loans: Student loans cannot be discharged unless you can show extreme hardship. However, it may be possible for you to reorganize other debts through bankruptcy in a way that allows you to keep up with your student loan payments.

Discuss Your Case with a New Jersey Bankruptcy Attorney

Contact me today to schedule a free, in-person consultation at my Cherry Hill office, where you can learn more about your debt relief options. My regular business hours are 8 a.m. to 5 p.m., Monday through Friday. Free parking is available. You can reach me by phone at 856-861-6203 or toll free at 866-488-2196. You can also contact me via e-mail.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.