How To Handle Both Secured And Unsecured Debts In Bankruptcy
Debt comes in two main varieties. Secured debt is the type that is backed by something real, such as the car on your auto loan or the house on your mortgage. Unsecured debt is only backed by a promise to pay it, such as your credit card. The American bankruptcy system treats the two types of debt differently. It's important to understand this difference to figure out how you'll want to deal with each type of debt.