Tampa Area Consumer Bankruptcy Lawyer
Consumer debt is generally debt taken on in order to enjoy goods and services rather than investment in a home or other asset that may appreciate in value. When the economy is rolling, or the real estate market booming as it did in the last decade, it is very tempting to take out a home equity loan. Perhaps you purchased a boat, car, or recreational vehicle. If you ran up credit cards enjoying dining out or other pleasures, you may now be burdened with crushing consumer debt.
If you are an individual who has become mired in debt, it is possible you might never get out without the benefits of the federal bankruptcy laws. Bankruptcy may allow you to discharge many of these debts while promising to pay other debts.
Consumer debt is the debt of individuals rather than businesses. It can be "secured" or "unsecured." Credit card debt is an example of unsecured debt: you borrow money purely on the promise that you will pay it back. A secured debt on the other hand, is borrowing for something that the lender can repossess in case you fail to repay the debt.
If you use a department store credit card to purchase a big ticket item (such as a TV, jewelry, computer, or furniture), you may have unknowingly given the store a security interest in the newly purchased item. Had you used a bank credit card the same purchase would have been unsecured.
Loans that are not secured are usually easier to discharge in bankruptcy. The lender was taking a greater risk, and therefore charged you a higher interest rate. Your ability to get credit was based partly on your credit rating at the time.
Secured loans often have to be paid if you want to keep the secured item(s) after you file bankruptcy or you can choose to surrender the item to your creditor and eliminate the debt. In a Chapter 13 bankruptcy some secured debts can be stripped and turned into unsecured debts which would allow you to keep the secured item and only pay a portion of the debt.
Hard Times Can Result In Debt
The law firm of Jay W. Moreland, P.A. knows that getting into debt is not only tempting, but unavoidable when people suffer illness, divorce or loss of a job. People rarely have enough savings to get by for very long, so we borrow.
Let an attorney answer your questions about bankruptcy if you need medical debt, credit card debt relief or have other overwhelming consumer debt. You may be eligible to file under Chapter 7 or Chapter 13. Other forms of bankruptcy are intended for businesses, farms, and other entities.
Let us help you gain greater peace of mind. Call 727-597-4273 in Florida, or toll free 888-559-9011 or contact us online.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.