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Secured Debt and Unsecured Debt


If you are struggling to keep up with your debt payments, it may be time to consider filing for bankruptcy. When you file for bankruptcy, you will need to categorize your debts as either secured or unsecured. This is important because the type of debt you have can affect how it is treated during bankruptcy proceedings.

Secured Debts

Secured debts are those that are backed by collateral. This means that if you default on the loan, the creditor can take the collateral to recoup their losses. Common examples of secured debts include:

  • Mortgages
  • Car loans
  • Secured credit cards
  • Personal loans with collateral

In bankruptcy, secured debts are treated differently than unsecured debts. If you want to keep the collateral, you will need to continue making payments on the loan. If you cannot afford to do so, the creditor may be able to repossess the collateral. Alternatively, you can choose to surrender the collateral and have the debt discharged in bankruptcy.

Unsecured Debts

Unsecured debts are those that are not backed by collateral. This means that if you default on the loan, the creditor cannot take any of your assets to recoup their losses. Common examples of unsecured debts include:

  • Credit card debt
  • Medical bills
  • Personal loans without collateral
  • Utility bills
  • Student loans (although these are difficult to discharge in bankruptcy)

In bankruptcy, unsecured debts are generally discharged. This means that you will no longer be responsible for paying them. However, there are some exceptions. For example, if you incurred the debt through fraud, it may not be dischargeable.

Fogt Law Can Help You

If you are struggling with debt and considering bankruptcy, it is important to work with an experienced attorney who can help you understand your options. Attorney Christopher Fogt has helped many clients in the Federal Southern District of Ohio get a fresh start through bankruptcy. Contact us today to schedule a consultation and learn more about how we can help you.


Fogt Law Office is a BBB Accredited Lawyer in Dayton, OH

Fogt Law, LLC
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