What is Secured Debt?
A San Jose bankruptcy lawyer explains: What is secured debt?
Secured debt is an item or items belonging to you, often referred to as assets, that are used as collateral when you seek a loan. Secured debt reduces the risk for the lender when they loan you money, as the secured debt is a “back up plan” if you are unable to fulfill the terms of the loan. An example of secured debt would be mortgage on your house. This type of secured debt would be considered as collateral toward the debt to the lending institution. Again, the secured debt acts as something to be used (or seized) only in the event you default on your loan repayment. This secured debt is to be taken very seriously, as the bank can take it from you and sell it to pay off the debt or the portion of the debt.
Another way to described unsecured debt is security. Security for the lending company that efforts can be made to “made good” on your debt if unforeseen circumstances render you unable to fulfill the obligation of the loan.
Secured debt is the opposite of unsecured debt, which carries much more risk for the lender.
If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
