Is Credit Card Debt ever Classifiable as Secured Debt?
Although filing for bankruptcy can start a person down the path to financial freedom, that process can be complicated if a person waits too long to file and has significant secured debts. If a person does not take advantage of bankruptcy protection early, a creditor with secured debt may be able to take collateral property from a debtor without needing to get a special court order. In some cases, this secured debt may even include debts such as credit card accounts, even though credit card debt is usually considered unsecured.
If your debts have overwhelmed your ability to take care of your family or yourself, it may be time to look for a powerful legal solution like bankruptcy. To learn more about how bankruptcy may be able to give you a fresh start, contact the Joliet bankruptcy lawyers of the Law Offices of Stuart B. Handelman, P.C., by calling 815-722-2201 today.
Secured Credit Card Debt
In some instances, a credit card account may have certain security requirements added to it by the bank or by the card provider. When this happens, any debt attached to that card may become secured debt. This means that a creditor has access to collateral property if the debtor cannot pay the balance due in a satisfactory manner.
Credit card debt can become secured in the following situations:
- A credit card provider designates that all purchases made with their company’s products be classified as secured debt
- Banks may make any debt on a new credit card secured debt
- Banks may make any debt on a renewed credit card secured debt
There is no need to continue to struggle with debts, whether they are secured or unsecured. To learn how a bankruptcy filing might help you to move on, contact the Joliet bankruptcy attorneys of the Law Offices of Stuart B. Handelman, P.C., at 815-722-2201 today.