What can I do to remove debt?
A San Francisco bankruptcy lawyer is asked: What can I do to remove debt?
What are the different kinds of debt?Debt is generally classified as either secured or unsecured. Secured debt is protected by the lenders interest in collateral (car, home, etc.) so in the event of a default the lender can repossess the property. Unsecured debt has no underlying security interest. The most common type of unsecured debt is credit card debt.
What is a deficiency?
A deficiency results when the holder of a secured interests takes back the property securing the loan and then sells that property (usually for less than the loan amount), which results in a difference between what was loaned and what was actually recovered. That difference is known as a deficiency and borrowers can sometimes still be responsible for paying that difference back to the lender.
How can I remove debt?
There are several different ways to remove debt. If you are overwhelmed by payments on a secured loan you can always try to work out an arrangement with the lender to return the secured property and no longer be responsible for the outstanding balance. For unsecured debt it might be possible to work out arrangements with the lenders to forgive a certain amount. However, the easiest option is generally filing for bankruptcy.
How will bankruptcy remove debt?
Bankruptcy will remove debt and relieve payment obligations in several different ways. If the individual does not want to keep their secured property, they can surrender that property and if there is a deficiency amount, it is generally discharged. Depending on the chapter of bankruptcy, often most, if not all of an individual’s unsecured debt is discharged. In certain circumstances, depending on the financial situation of the borrower, a percentage may have to be repaid to unsecured lenders, but most bankruptcies involve the discharge of all unsecured debt.
If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!
