A loan that isn’t backed up by property or secured is considered to be unsecured debt. Essentially, no collateral has been given to the lender in the event that the borrower is unable to pay back the loan. Lenders can’t take a borrower’s assets until judgment has been rendered. When this happens, a lien is placed on the borrower’s property.
Types Of Unsecured Debt Include:
Secured debt is backed by collateral. This type of debt can include home loans, auto loans, and personal loans. If you fail to pay the loan, the lender can confiscate your properties during the foreclosure process.
Prepaid credit cards or credit cards that are tied to a bank account are considered secure. If you fail to pay the amount on the card, the lender can take money from your bank account.
You can find relief from overwhelming debt by contacting the our Dallas bankruptcy attorneys at Engel Law Group, P.S.. Our staff is familiar with Chapter 7 bankruptcy, along with other alternatives that are available to consumers in the state of Texas.
It’s time to get debt free. It’s time to contact Engel Law Group, P.S..