What is the difference between a secured and unsecured creditor?
A secured creditor is any creditor that has collateral for your loan (i.e., home mortgage, car note, household appliances, etc.). In other words, if you default on your loan, does that creditor have something that they can repossess? If so, they are secured. An unsecured creditor is one with no collateral (i.e., credit cards, medical bills, signature loans, etc.). A secured creditor is absolutely entitled to their collateral, or its value, when a bankruptcy is filed. I have a creditor that I don’t want to offend. Can I continue to pay them and keep them out of the bankruptcy? Yes, if you can repay the debt. You can accomplish this by signing a reaffirmation agreement in a chapter 7, and by repaying the full value of the loan under a chapter 13. What is exempt property? Exemptions are very important in bankruptcy law. Property that is “exempt” is property that cannot be seized or attached by creditors. Under Mississippi law, which the bankruptcy court uses for exemptions, each person ha
