Best Foreclosure Lawyers in Bolingbrook, IL

Unsecured Debt Unsecured debt is debt that is not secured by collateral, such as credit card debt, medical bills, or lawsuit judgments against you. Unsecured creditors cannot take any property to satisfy their debts. Instead, they typically have to file a lawsuit against you and win before they can initiate collection proceedings. If the debtor has non-exempt property the trustee will take it, sell it, and distribute the proceeds to your unsecured creditors. (If the property is the security for a debt, the secured creditor will be paid first. For example, if you owe $5,000 on a car that's worth $9,000, the holder of your car note will receive its $5,000, and the remaining $4,000 will be distributed to your unsecured creditors.) Unsecured creditors are paid in order of priority. Priority debts are those that, for public policy reasons, are repaid first. These include child support, spousal support, money you owe to employees, and tax debts. If any money is left after your priority debts are paid, it will go to your other unsecured creditors, such as credit card companies. At the end of your bankruptcy case, you might still owe certain unsecured debts. Debts that cannot be discharged in bankruptcy include child support, student loans (with some exceptions), and many types of tax debts. Unless a debt falls into a nondischargeable category, however, it will be wiped out at the end of your bankruptcy case.