Secured debt is debt that is tied to your property with the creditor possessing a “lien” on such property. Conversely, unsecured debt is not tied to any property. The most common examples of secured debt include mortgages and car loans, whereas the most common examples of unsecured debt include credit cards, medical bills, and personal loans.
Yes, you can. Filing for bankruptcy can stop people who have won in court from taking your home, wages, or other things you own. It gives you the chance to sort out your money issues and keep your house.
Yes. Bankruptcy stops all debt collection, including by the IRS and the Illinois Department of Revenue. Sometimes, Chicago bankruptcy lawyers can help eliminate interest, penalties, and old tax debt with IRS debt negotiation services.
After your meeting of creditors occurs (about a month after the case is filed), you can start looking for a new car if a lender is willing to lend to you. There are many car finance companies that lend to people right out of bankruptcy or after the meeting of creditors and will sometimes need court approval. The same goes for purchasing a house and finding a lender willing to give you a mortgage.