Chattanooga Bankruptcy Attorney Clark & Washington Note the Difference Between Unsecured and Secured Debt

    CHATTANOOGA, TN, MAY 01, 2015 /24-7PressRelease/ -- According to Clark & Washington, leading bankruptcy attorneys in Chattanooga, knowing the difference between secured and unsecured debts is vital whether you're borrowing money or structuring a debt repayment plan.

A secured loan is tied to an asset that a creditor can go after in case of non-payment on your part. Mortgages and car loans are two common examples of secured debts. When you fall behind on your payments, the owner of the lien can take your house or car, sell them, and claim all or part of the proceeds from the sales, depending on the amount they are owed.

An unsecured debt is not tied to any asset. Credit card debt is the most common type of unsecured debt. Student loans and payday loans are also examples of unsecured debts. If an unsecured debt becomes delinquent, a creditor can hire a debt collector or take a debtor to court to garnish their wages. Delinquent unsecured debts are typically reported by creditors to credit bureaus, which can negatively impact a debtor's credit profile.

It is often advisable to keep up with the payments of secured debts because delinquency means losing a vital asset like your house or car. On the other hand, some unsecured debts, such as credit cards, have high interest rates. Paying them off early means you save on monthly interest charges. If you are on a repayment plan for a Chapter 13 bankruptcy, it is important to keep making the regular payments that are stipulated on your repayment plan.

Consult the Chattanooga bankruptcy attorneys at Clark & Washington before you file for bankruptcy. Their expertise and experience are your best assurance of a successful and stress-free bankruptcy filing.

To learn more, go to http://www.Chattanooga-bankruptcy-attorney.com.

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.chattanooga-bankruptcy-attorney.com.

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