One of the reasons that many people hesitate to file for bankruptcy is that they are worried about what might happen to their financial future. Bankruptcy, however, was designed to be a fresh start rather than a punishment.
Whether in a news item, an article or a billboard advertisement, you have probably seen the terms secured and unsecured debt in relation to bankruptcy. As a core concept in bankruptcy, the division between secured and unsecured debt is not always as clear as debtors would hope. Depending on your situation, your amount of secured versus unsecured debt can help you choose between a Chapter 7 and Chapter 13 bankruptcy filing.