Consumer Debt

Consumer debts come from the personal use or purchase of goods, services or assets, as opposed to business uses or purchases. If your consumer debt is beyond your ability to afford, bankruptcy may be right for you. Contact us for a free consultation about your situation.

The Difference Between Secured Debt and Unsecured Debt

Most consumer debts fall into the broad categories of secured or unsecured. Secured debts are tied to something of value such as a house, a car or a boat, which can be taken from a borrower or debtor (the person who owes money) by a creditor or lender (the business or person who is owed the money) if the loan is not paid on or paid back. Unsecured debts such as credit cards are not attached to anything that can be taken if the debt is not repaid.

Unsecured Debt and Bankruptcy

Credit cards, personal loans, payday loans and medical debt are common forms of unsecured debt. While these debts are not attached to something that can be taken away, like a house or a car, creditors can harass you, use negative credit reporting and, in some cases, take you to court in their efforts to get payment. Court judgments on unsecured debts can result in wage garnishment, the involuntary taking of money from your paycheck.

Bankruptcy can be used to stop harassment and wage garnishment. Contact us for a free consultation about whether bankruptcy is right for you.

Secured Debt and Bankruptcy

Common forms of secured debt are mortgages and car loans. Mortgages are loans that are secured against a house or other property; home equity lines of credit are also secured against a property. If a mortgage becomes delinquent, the lender has legal rights to take the property back or sell it to recover money through the process of foreclosure. In Mississippi, bankruptcy can stop foreclosure and allow you time to catch up on arrears.

Car, truck, motorcycle and boat loans are secured against the vehicle or boat. If payments are not made on a car loan, for example, the creditor has the legal right to repossess it. Bankruptcy will stop repossession of vehicles. Contact our attorneys to find out more about whether bankruptcy is right for you.

Other Kinds of Debt

Student loans: While student loans typically cannot be discharged in a bankruptcy, your situtation may be unique.  Additionally some bankruptcies can help restructure student loan payments.  Our attorneys look at each case individually to determine what will work for you.

Child support and alimony: While bankruptcy will not change how much you owe for child support or alimony, getting relief from other debts could enable you to pay on those obligations.

Tax debts: Most people assume that tax debt cannot be included in your bankruptcy.  Our lawyers are experienced in determining whether your tax debts can be discharged.  Schedule a free consultation to determine if we can help you escape or reduce the burden of a high tax debt.

Consumer Debt Relief Lawyers

If you are dealing with the stress of excessive debt, contact us to learn more about bankruptcy and debt relief possibilities. As debt relief lawyers, we will take the time to understand your unique debt situation and explain all of the options available to you.