In the United States, credit card debt makes almost 40% of all consumer debt, accounting for a huge portion of overall household debt. Unsecured debt can be things like credit cards, medical bills, child support, alimony, student loans, and payday loans. Unsecured debt is basically your promise to pay and does not have collateral that can be seized for non-payment.
Judgments and Liens
If you stop making your credit card payments, your creditors will start calling and sending you letters. If you continue to default on your payments, the lenders can potentially take you to court and sue you. If an unsecured creditor is successful in bringing a lawsuit against you, they could obtain a judgment in their favor. A lender may be granted the right to attach liens to your property or even your home to enforce payment. These liens can stay on your property for years and cause problems if you ever decide to sell or dispose of the property.
Chapter 7 Bankruptcy
Chapter 7, or an elimination bankruptcy, can wipe away most of your unsecured debt in as little as three to six months. Some debt, such as alimony and child support, will not be eliminated in bankruptcy. Failure to pay these obligations can, in fact, prevent you from obtaining licenses or land you in jail. Bankruptcy can, however, clear other debt away, giving you more income to pay those responsibilities.
If you have overwhelming debt, contact a Fort Worth bankruptcy attorney to find out how you can eliminate the debt and get financial relief.