Nashville Attorneys Clark & Washington Discuss Secured, Unsecured and Priority Debts in Bankruptcy

    NASHVILLE, TN, August 01, 2014 /24-7PressRelease/ -- The Nashville bankruptcy attorneys at Clark & Washington wish to inform the public of the three types of creditor claim classifications that exist during a bankruptcy. If a creditor wants to get paid after you have filed for bankruptcy, they will have to file a proof of claim. This will indicate the type of claim a creditor has in your property stemming from a certain debt. Whether the creditor will be granted the right to get paid through your bankruptcy will depend on the type of claim they have.

Secured, Unsecured and Priority Debt

A creditor with a secured claim has a security interest in the property owned by the debtor. This security interest is often referred to as "collateral." The most common form of secured claims are mortgages and car loans.

Unsecured claims are claims covering more generic types of debts. For these debts, the creditor has no collateral in any debtor-owned property. Examples of unsecured claims would be credit card debt, student loans, medical bills, utility bills, personal loans and other similar debts. The Nashville bankruptcy attorneys note that an unsecured claim can become a secured claim at any time. All that is required is that the creditor obtain a judgment for a lien against you.

Priority claims take priority over other debts. These claims will be paid first over other claims if a debtor has available funds to cover the debt. Common priority claims are child support, alimony and taxes. Priority claims are non-dischargeable claims, which means that filing for bankruptcy will not alleviate you of your obligation to pay these debts.

If you plan on filing for bankruptcy and have any priority claims, you should consult an experienced Nashville bankruptcy lawyer to handle the filing.

For more information on secured, unsecured and priority debts or filing for bankruptcy in Nashville, visit http://www.bankruptcyattorneynashiville.com.

About Clark & Washington:

Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal chapter seven and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.

For more information, visit http://www.bankruptcyattorneynashville.com.

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