{"id":5867,"date":"2021-02-10T09:46:09","date_gmt":"2021-02-10T09:46:09","guid":{"rendered":"https:\/\/mcintirelaw.com\/?p=5867"},"modified":"2023-05-05T01:36:23","modified_gmt":"2023-05-05T01:36:23","slug":"what-are-secured-debts","status":"publish","type":"post","link":"https:\/\/mcintirelaw.com\/what-are-secured-debts\/","title":{"rendered":"What Are Secured Debts?"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:1996.8px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\" style=\"--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;\"><div class=\"fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1\"><p><span style=\"font-weight: 400;\">COVID-19 has put a lot of Americans into financial hardship. You need to know about debt, what the difference is between secured and unsecured debt. The types of debt and the bankruptcy chapter will determine what happens to your debt, like whether a collection agency can get back the debt, or whether it can be discharged. Read on to find out more about secured debt.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For more information, talk to an expert in bankruptcy laws at Thomas E. McIntire and Associates, L.C.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Secured_debt_Definition\"><\/span><span style=\"font-weight: 400;\">Secured debt: Definition<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6629bb13537a3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6629bb13537a3\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/mcintirelaw.com\/what-are-secured-debts\/#Secured_debt_Definition\" title=\"Secured debt: Definition\">Secured debt: Definition<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/mcintirelaw.com\/what-are-secured-debts\/#Comparing_unsecured_debt\" title=\"Comparing unsecured debt\">Comparing unsecured debt<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/mcintirelaw.com\/what-are-secured-debts\/#Involuntary_and_Voluntary_Liens\" title=\"Involuntary and Voluntary Liens\">Involuntary and Voluntary Liens<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/mcintirelaw.com\/what-are-secured-debts\/#Involuntary_Liens\" title=\"Involuntary Liens\">Involuntary Liens<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/mcintirelaw.com\/what-are-secured-debts\/#Voluntary_Liens\" title=\"Voluntary Liens\">Voluntary Liens<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/mcintirelaw.com\/what-are-secured-debts\/#Perfecting_a_Lien\" title=\"Perfecting a Lien\">Perfecting a Lien<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/mcintirelaw.com\/what-are-secured-debts\/#Collecting_Secured_Debt\" title=\"Collecting Secured Debt\">Collecting Secured Debt<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\">A secured loan\/secured debt is something that you owe that is backed by collateral.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Lien is the term for the security interest granted over the property to secured payment. The lien is what makes a debt secured. If a debt is secured, this gives the lender more confidence over letting you borrow money, as there is a way for them to collect repayment.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Comparing_unsecured_debt\"><\/span><span style=\"font-weight: 400;\">Comparing unsecured debt<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Unsecured debts are those not backed by any collateral. If the debtor defaults and is unable to repay, there is no property that the creditor can seize to get the debt repaid. Typically, lenders look for someone with a good credit score to take out unsecured loans because they\u2019re confident in their ability to pay it back.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Examples of unsecured debt include credit cards, medical bills, and utility bills.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Involuntary_and_Voluntary_Liens\"><\/span><span style=\"font-weight: 400;\">Involuntary and Voluntary Liens<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"alignright size-full wp-image-5868\" src=\"https:\/\/i0.wp.com\/mcintirelaw.com\/wp-content\/uploads\/2021\/02\/secured-debts.jpg?resize=338%2C338&#038;ssl=1\" alt=\"secured debts\" width=\"338\" height=\"338\" srcset=\"https:\/\/i0.wp.com\/mcintirelaw.com\/wp-content\/uploads\/2021\/02\/secured-debts.jpg?resize=66%2C66&amp;ssl=1 66w, https:\/\/i0.wp.com\/mcintirelaw.com\/wp-content\/uploads\/2021\/02\/secured-debts.jpg?resize=150%2C150&amp;ssl=1 150w, https:\/\/i0.wp.com\/mcintirelaw.com\/wp-content\/uploads\/2021\/02\/secured-debts.jpg?resize=200%2C200&amp;ssl=1 200w, https:\/\/i0.wp.com\/mcintirelaw.com\/wp-content\/uploads\/2021\/02\/secured-debts.jpg?resize=300%2C300&amp;ssl=1 300w, https:\/\/i0.wp.com\/mcintirelaw.com\/wp-content\/uploads\/2021\/02\/secured-debts.jpg?fit=338%2C338&amp;ssl=1 338w\" sizes=\"(max-width: 338px) 100vw, 338px\" data-recalc-dims=\"1\" \/>Involuntary Liens<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">These are liens placed on a property by others for unpaid obligations, usually by court order, or by federal or state statute. The most common example of these is tax liens.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Voluntary_Liens\"><\/span><span style=\"font-weight: 400;\">Voluntary Liens<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A voluntary lien is taken out consensually during the transaction, whether through a contract, mortgage, or deed of trust. This gives the creditor security interest. It also allows the creditor to takes actions such as foreclosure for a home mortgage, or repossession for cars, if the debtor cannot pay the loan debt.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Perfecting_a_Lien\"><\/span><span style=\"font-weight: 400;\">Perfecting a Lien<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Perfecting a lien is the legal process where a lender informs other parties of the lien and establishes priority versus other creditors. This gives this creditor the right to foreclose the property if the debtor fails to make the monthly payments on time.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are big consequences for a creditor who doesn\u2019t properly perfect a lien. If you <a class=\"linkilo_keyword_link  hyperlinks\" href=\"\/west-virginia-means-test-estimator\/\"  rel=\"dofollow\" title=\"file bankruptcy\" data-linkilo-keyword-link=\"linked\">file bankruptcy<\/a>, the court may set aside a lien that was not perfected, meaning that it\u2019s treated as if it doesn\u2019t exist, and the lender turns into an unsecured creditor.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Collecting_Secured_Debt\"><\/span><span style=\"font-weight: 400;\">Collecting Secured Debt<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you can\u2019t pay off your secured debt, there are several ways a creditor can collect. Here we list down ways collection agencies can take back the debt.<\/span><\/p>\n<p><b>Repossession<\/b><span style=\"font-weight: 400;\">. A secured creditor may repossess the property of a borrower if they have defaulted on payments. If you want to know how to keep your vehicle from getting repossessed, contact a <a href=\"https:\/\/mcintirelaw.com\/west-virginia-bankruptcy-attorney\/\"><strong>bankruptcy attorney<\/strong><\/a> immediately.<\/span><\/p>\n<p><b>Court action<\/b><span style=\"font-weight: 400;\">. A secured creditor may file a court action to obtain a judgment against a debtor for the entire amount owed, or for the balance remaining after deductions.<\/span><\/p>\n<p><b>Foreclosure<\/b><span style=\"font-weight: 400;\">. A lender may sell a home in a foreclosure sale for secured loans. Lenders also can foreclose liens against personal property, in most cases without a lawsuit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You may be drowning in student loan debt, medical debt, or <a class=\"linkilo_keyword_link  hyperlinks\" href=\"\/west-virginia-credit-card-debt\/\"  rel=\"dofollow\" title=\"credit card debt\" data-linkilo-keyword-link=\"linked\">credit card debt<\/a>. If debt collectors are hounding you trying to get your debt paid off, filing for bankruptcy might be a way to get them off your back. If you can\u2019t pay back your debt, a bankruptcy filing places an automatic stay, preventing any collection action for any debt collector. Bankruptcy discharge can help you deal with mounting debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Of course, it\u2019s not an easy decision to go bankrupt. It affects your creditworthiness and stays long on your credit history. It\u2019s best to talk to an expert in bankruptcy law to discuss your options with a bankruptcy case. It may be possible for you to get a payment plan or have your assets liquidated to pay the debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re considering bankruptcy or would wish to clarify the bankruptcy information, talk to us. Consult one of our <a href=\"https:\/\/mcintirelaw.com\/\"><strong>experienced bankruptcy lawyers<\/strong><\/a> at <strong>Thomas E. McIntire and Associates, L.C<\/strong>. We\u2019ll help with filing bankruptcy so you\u2019ll get out of debt and get a fresh start. Call 304-232-8600\u200b\u00a0 for more information.<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":2,"featured_media":5869,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2150],"tags":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/mcintirelaw.com\/wp-content\/uploads\/2021\/02\/secured-debt.jpg?fit=626%2C417&ssl=1","_links":{"self":[{"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/posts\/5867"}],"collection":[{"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/comments?post=5867"}],"version-history":[{"count":3,"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/posts\/5867\/revisions"}],"predecessor-version":[{"id":6653,"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/posts\/5867\/revisions\/6653"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/media\/5869"}],"wp:attachment":[{"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/media?parent=5867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/categories?post=5867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mcintirelaw.com\/wp-json\/wp\/v2\/tags?post=5867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}