Many people have heard the idea that unsecured debts are discharged in a bankruptcy. While you may have heard of it, you likely want to know what that means to your particular situation. How does that affect your home? What does that mean if you have an immense amount of credit card debt? Can a judgment be discharged? At our law firm, you can count on our legal team to help get your bankruptcy questions answered. We are the legal teaThe Law Office of Judith A. Descalso, and our firm serves the needs of individuals throughout Escondido, San Diego North County and San Diego in Chapter 7 bankruptcy, Chapter 11 bankruptcy and other bankruptcy law matters.
Secured Versus Unsecured Debts
Secured and unsecured debts are handled differently in a bankruptcy. For instance, most unsecured debts can be discharged in a bankruptcy, while only some secured debts can be discharged. Here are a few examples of each:
- Secured debts: Real property taxes, mortgage, equity lines of credit, car loans, money borrowed with collateral and judgments that have been recorded.
- Unsecured debts: Credit card debt, medical debts and personal loans.
Income tax liability is not necessarily considered a secured debt. The debt is only considered secured if there is a recorded tax lien with a proper agency. For instance, income tax that has been due for more than three years (with the tax return being filed at least two years before) may be dischargeable. Income taxes may only be dischargeable if a tax return has been filed.
Our lawyer, Judith A. Descalso, is a certified bankruptcy specialist and has more than 25 years of legal experience. She prides herself on her ability to connect with clients and the level of quality in her services. Our entire legal team takes a proactive and empathetic approach to handling bankruptcy matters, and we pledge to provide highly individualized attention to your case at all times.
Contact Our San Diego Area Secured And Unsecured Debt Attorney
Interested in scheduling a free initial consultation with our Escondido debt discharge attorney? We invite you to contact our firm by filling out a short and simple contact form located online. Our team can also be reached by phone at our Escondido office at 760-670-4863 or 866-497-6196.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.