Types Of Debt
Types of Debt – A Legal Overview
The process of getting out of debt can be stressful and difficult to understand. It can be helpful if you are familiar with the different types of debt and whether they can be discharged through bankruptcy or consolidated through other means. Below is a brief overview.
Call the Weller Law Firm at 618-277-3476 to discuss your debt in a free initial consultation.
- Unsecured debt — This type of debt typically has high-interest rates, is usually dischargeable during Chapter 7 bankruptcy and can include:
- Credit card debt
- Medical bills
- Personal loans, including debts to moneylenders
- Payday loans
- Overdraft fees
- Secured debt — These are loans that typically are long term, have a fixed rate of interest and are item specific, such as a house or car. They are only dischargeable through bankruptcy if you are seeking to relinquish ownership in the secured item. As various avenues of relief are available, consultation before any final decisions should be obtained. Similar debts include:
- Home equity loans-line of credit
- Refinancing mortgage
- Automobile/vehicle loans
- Other debt — These do not fit simply in the category of secured or unsecured debt and may or may not be dischargeable through bankruptcy:
- Student loan debt
- Child or spousal support
- Back taxes
- Subordinated debt
- Marital debt, which may be secured or unsecured
We Can Help You Evaluate Your Debt And Your Options
The best way to ensure you understand your options for debt relief is to speak with an experienced bankruptcy lawyer. At the Weller Law Firm, we help people with overwhelming debt in Belleville and throughout southern Illinois. We can provide you with the sage advice and trusted guidance you need to determine if you should file for bankruptcy or consider other debt relief options.
Contact our law firm at 618-277-3476 or 888-446-6538 to schedule your free initial consultation. Or send us an online message using this website, and we will get back to you. We are available for appointments via phone or Skype for clients who are unable to come to our office.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.