What is the difference between a secured and non-secured debt in Chapter 13 Bankruptcy?

In Chapter 13 Bankruptcy, there is a difference between secured and non-secured debt. A secured debt is a debt that is secured by an asset or property. For example, if you have a car loan or mortgage, the loan is secured by the vehicle or the house. If you do not make the payments on the loan, the creditor is able to take possession of the asset in order to make up the payments. A non-secured debt is a debt that is not backed by an asset or property. For example, an unpaid credit card bill is a non-secured debt. The creditor does not have any rights to take possession of your property in order to make up the payments. In Chapter 13 Bankruptcy, your secured debts are treated differently than your non-secured debts. With secured debts, you must continue to make payments on the debt throughout the bankruptcy process, while with non-secured debts, you may be able to settle the debt for less than what you owe. This means that if you owe a lot of money on your car loan or mortgage, you can make a lower payment in exchange for the creditor not taking away your property.

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What is the difference between a secured and non-secured debt in Chapter 13 Bankruptcy?

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