What are secured and unsecured debt?

If a debt is secured, the creditor has the right to seize some of the debtor’s property if the debtor fails to repay the full amount. In Arizona bankruptcy law, this kind of debt is non-dischargeable, because they cannot be discharged by bankruptcy. Common examples of secured debts are taxes, student loans, mortgages, and car payments.

An unsecured debt, in contrast, can usually be discharged through bankruptcy. If this occurs, the debtor will no longer be responsible for repaying it. Common unsecured debts include credit card bills, personal loans, and leases.

To learn more, contact the Arizona bankruptcy lawyers of the Harmon Law Office, LLC at 480-829-0494.

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