If you are having trouble paying your mortgage and/or car loan, you may be considering bankruptcy. These types of secured debt can consume most of your monthly income, leaving little money left to pay your other bills. Bankruptcy may be a good choice. Speak with one of our lawyers to learn if it is right for you.
At Prescott & Pearson, P.A., we are committed to helping people in Minnesota find solutions to debt troubles. If you are worried about foreclosure, we can help you address that issue. We can also help you with vehicle repossession. Please call 651-968-8096 or 888-366-0827 to schedule a free consultation.
What Is Secured Debt?
Secured debt has collateral that secures the loan. Some of the most common types of secured debt include:
- Second mortgages, home equity loans, home equity lines of credit (HELOCs)
- Auto loans
- Motorcycle and boat loans
With secured debt such as a car loan, the lender has the right to repossess the collateral (your vehicle) if you are no longer making payments on the loan. The same is true with a mortgage. If you stop making mortgage payments, your lender can foreclose and take your home.
In some cases, when the collateral is repossessed and liquidated, the lender does not recover enough money from the sale to cover its loss. This deficiency balance becomes an unsecured debt. Minnesota has an anti-deficiency statue if a mortgage is foreclosed by advertisement, but not if it is foreclosed by action, which is rare. For general secured debt such as a vehicle, there is no anti-deficiency statue and the lender can collect a deficiency balance.
Talk to a lawyer if you are facing these problems. We can examine your finances and help you determine what options are right for you.
Minneapolis Secured Debt Attorney · Minnesota Bankruptcy Attorney
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Minneapolis-St. Paul Area: 651-968-8096
Minnesota Toll-Free: 888-366-0827
Please call us at the numbers above or contact us online to schedule a consultation.