Federal and New Jersey laws make a clear distinction between secured debts and unsecured debts, both in terms of the rights of lenders and borrowers' ability to get the debts discharged.
There are debt relief options for people who have missed home or car payments, those with high levels of credit card debts or medical bills or those facing other types of debt problems. If you find yourself having difficulty paying your bills or your debts are out of control, you should speak with a knowledgeable attorney as soon as possible.
Bankruptcy Attorneys in Neptune and Toms River
William H. Oliver, Jr. & Associates is a law firm dedicated to helping people get a fresh financial start. Our founding attorney, William H. Oliver, has a comprehensive understanding of federal and New Jersey bankruptcy laws and the different debt relief options that can reduce or eliminate debt. In a free consultation, Mr. Oliver can review your situation and explain those options.
The Difference Between Secured Debts And Unsecured Debts
Simply stated, a secured debt is one for which the borrower has pledged a piece of property (collateral) in return for a loan. The most common secured debts are car loans and mortgages. Unsecured debts are those for which the borrower has not pledged property. Examples of unsecured loans are credit card debts, medical bills and personal loans. If the borrower defaults on a secured debt, the creditor can seek to repossess the property that was pledged.
Unsecured debts are treated much differently in bankruptcy court than secured debts. Under Chapter 7 bankruptcy, unsecured debts are completely discharged. Under Chapter 13 bankruptcy, you make monthly payments to reduce your unsecured debts, and at the end of your repayment period your remaining unsecured debts are completely discharged.
Under both Chapter 7 and Chapter 13 bankruptcy, you can keep property purchased with secured debts, provided that you can keep current on your debt payments and don't default. However, to do so the lender may require you to sign a reaffirmation agreement.
When you retain William H. Oliver, Jr. & Associates, we will develop the optimal debt relief plan for you, designed to help you obtain maximum reduction in your debts while enabling you to keep as much of your property as possible.
Free Consultation With A Lawyer
To learn more about your debt relief options, contact William H. Oliver, Jr. & Associates. We represent clients throughout Monmouth County, Ocean County and elsewhere in New Jersey.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.