BANKRUPTCY LAWYERS CAN HELP WITH LIENS
Debts not requiring an immediate pledge of property are called nonconsensual loans. This debt category of allows creditors to file judgement against you if you default on payment and, if awarded, get a lien against you and your property. A lien makes sure the first portion of any sales proceeds of the property are paid to the creditor before you are paid the remainder. Examples of liens filed against personal property are: tax liens on property (federal, state, local); money judgements; liens created by law (mechanic’s or homeowner). These don’t require a judgement to be recorded.
Unsecured debt is usually more expensive (higher interest rate) because there’s no specific asset securing it. Credit card debt, student loans and unpaid medical bills are examples of unsecured debt, and if you have fallen behind with payments the lenders can’t take your personal property in settlement. However, their collection efforts can make life very unpleasant and difficult, which sometimes results in debtors seeking relief via Chapter 7, Chapter 11 or Chapter 13 bankruptcy filing.