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Video Transcribed: Oklahoma Bankruptcy Attorney Edward Kelley here, answering your bankruptcy questions with oklahomacitybankruptcyattorney.pro. Unsecured debt, your credit cards or medical bills, your signature loans, things that have no property tied to them to secure them.
Not typically those signature loans where you wrote down your TV without even specifying it, or your stereo and your bed, but perfected security interest, or proper security interests.
Those are secured debts and the creditor, the person you owe money to, is entitled to that collateral if you default on that debt. So for example, in chapter seven, you want to get out from under that car completely, you got to give it back.
If you don’t reaffirm it, they have the right to take the collateral, whether you’re current on the payments or not. Unless you’re paid off, they can take it.
So those are secured debts. And then we talked about what’s not dischargeable, the biggies, student loans, meaning properly federally backed, guaranteed student loans. Child support, criminal penalties and fines.
I also talked about adversary proceedings and how creditors, if they disagree with you about a debt, for example, it’s fraudulent, can render your debt non-dischargeable in a fairly nasty, confrontational process that you’ll need additional counsel or retain your counsel further forward. So that about wraps it up. That’s an overview of types of debt.