Bankruptcy May Help You Eliminate Unsecured Debt

Unsecured debt is often the reason that people file bankruptcy. An injury or serious illness can result in tens of thousands of dollars in medical bills. Or, perhaps you had to use credit cards for everyday purchases such as groceries and gas. These types of unsecured debt can quickly become overwhelming.

If you are struggling with unsecured debt, speak with an attorney at Prescott Pearson & Tande, PA We can review your finances and help you determine what debts can be discharged in bankruptcy and whether bankruptcy is the right option for you. Please call us at 651-968-8096 or 888-366-0827 to schedule a free consultation to discuss your debt.

Most Unsecured Debt Can Be Discharged

Secured debt such as a mortgage has collateral that can be repossessed by the lender. With unsecured debt, there is no tangible collateral to secure the amount you owe. This means there is nothing for the creditor to repossess. Some common types of unsecured debt include:

Unsecured debt is typically discharged in Chapter 7 bankruptcy, which means you will not have to repay it. In Chapter 13, eligible debts will be discharged after successful completion of the repayment plan.

Some types of unsecured debt, including student loans and taxes, are usually not dischargeable under any chapter of bankruptcy unless they meet strict criteria.

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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.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.