Bankruptcy lawyers in San Antonio’ define bankruptcy as one of the most complicated legal bearings in which you have to take every single step very minutely. They also say that few steps and proceedings are different from country to another but the basic procedure is all the same. ‘Bankruptcy lawyers in San Antonio’ in this article, is going to make you understand the different types of debts so that you can remain conscious enough while making a debt or giving a debt.
When talking about the initial basics of bankruptcy, ‘Bankruptcy lawyers of San Antonio’ begin by introducing the two main parties involved in the condition to you. They are the ‘Creditor’ and the ‘debtor’. They further go on to explain these two categories in a more elaborate way. For your understanding, they explain a ‘debtor’ as an individual or a group of individual or a company to debts or owe money to a person or an organization or a bank. They are called the creditor. Mainly, the creditor is an organization that lends money or debt money to individuals or companies with high-interest rates on the capital sum within a particular tenure. Generally, bankruptcy cases include many creditors at a time.
‘Bankruptcy lawyers of San Antonio’ now take a turn to explain different types of debt to you, so that you can be very much aware of the business tier you getting involved in. debts are classified into two kinds, namely- ‘secured’ and ‘unsecured’ debt. Secured debts are the condition where creditors or lenders have the authenticated and judicial right on taking over something that belongs to you if anyhow you cannot repay the debt within the given time period. For example- if your mortgage in of your assets, say your house and take a loan from the bank, then the bank gets a hold on your property. If you stop paying the mortgage amount then the bank can get the proprietorship of your house. ’Bankruptcy lawyers of San Antonio’ say about secured debt in business as well. Secured debts in business are some way more complicated than individual debt. Several business loans may provide access to indefinite and obscured business aspects like patents, trademarks or intellectual property. You have to always keep it in mind if you make a secured debt in business cannot be completely discharged. As a debtor either you keep on paying the debt and keep the items or stop paying on the debt and get the items go under the creditors’ possession. One more important thing ‘Bankruptcy lawyers in San Antonio’ added for your knowledge is that secured creditors are always liable to be paid at first. The second type of debt is an unsecured debt which means there is no property tie up in this debt.in an unsecured debt, none of your properties like your house or car come under the lien of the creditor. If you stop paying on the debt, in any case, the creditors cannot imply a proprietorship on your assets, unless they sue you and get a legal order for it. ‘Bankruptcy lawyers in San Antonio’ give the most common example of unsecured debt so that you can understand it in a straight and simpler way. The lawyers cite ‘students’ loan’, ‘medical bill’, ‘utility bills like telephone, electricity bills’, ‘personal loan where there is no agreement between the creditor and the debtor.’