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Unsecured Debt
Attorney in Houston, Texas

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The difference between secured and unsecured debt can be difficult to understand and can lead to more stress in your bankruptcy case. As your debt mounts, many people turn to credit cards in an attempt to keep up. Credit cards are considered unsecured debt and will be factored into the options when considering bankruptcy.

Securing the help of an experienced attorney is the best way to ensure that you're making the right decisions in regard to filing for bankruptcy. Houston bankruptcy lawyers at Payne & Associates can help you understand your debt and go over your options.

If you have questions about how to address unsecured debts in the Houston area, contact me for advice.

What Is Unsecured Debt?

Unsecured debt isn't tied to a specific asset and can pile up, creating additional angst during an already stressful situation in your life.

The most common types of unsecured debt include:

  • Unpaid rent

  • Medical bills

  • Student loans

  • Credit cards

Because there are no tangible assets to use in exchange for these debts, unsecured financial burdens carry a higher interest rate. Secured debts, those that have tangible assets like homes and cars, cannot be liquidated to pay off unsecured debts. If you owe money on those items, the creditor has a claim to that property.

Can I Keep My House?

When considering the option of filing for bankruptcy, many of our clients are concerned about keeping their house. This is understandable, as many people have families and want to maintain some form of stability despite having to file for bankruptcy. There are a few legal variables that may impact a client's ability to keep their home, but Texas is one of the few states that does allow for it to happen.

In many cases, if you are current on your payments and the value doesn't exceed a certain limit, you may be able to keep your home and your vehicle. If you're behind on payments, however, consider filing for Chapter 13 bankruptcy to establish a reasonable repayment plan to get your debts back on track.

The options for filing bankruptcy are complicated. At Payne & Associates, our Houston bankruptcy lawyer works with you to determine the best solution and then remains on your side to fix and monitor your credit following the bankruptcy.