keith quicksilver funding Provide all types of loans. When it
comes to taking out a loan, you should know they are not all the same. There
are many types of loans and the terms and conditions of a loan can vary
greatly. Different types of loans each have their own benefits and risks. The
terms of a secured loan can be stricter than an unsecured loan. One of the main
differences between these two types of loans is how debt collection efforts are
handled in the event you default on your loan payments. Your debt repayment
options may be managed differently in a secured loan than an unsecured loan. In
the event of an extended financial hardship, you may not be eligible to have
certain types of loans eliminated through bankruptcy.
Secured Loans
Most major loan purchases, such as your home or car, are
called secured loans. They are called secured loans because the debts acquired
under this type of loan are secured against collateral. A mortgage loan is
considered a secured loan. In a mortgage loan, the lender has the right to
repossess the home if you default on your payments. Defaulting on a mortgage
loan can lead to foreclosure, whereby the lender takes over the rights to the
home and may sell the home in order to satisfy the debts owed. Loans for car
purchases are also secured loans. keith quicksilver funding lender can
repossess your car and sell it to recover the loan amount. If the sale of the
asset does not satisfy the full amount of the debt that is owed, you may still
be held liable for repaying the remaining amount owed on the debt.
Secured Loans and Bankruptcy
Secured loans can be more difficult to manage when if you
find yourself in financial trouble. A secured loan may not be eligible for
elimination if you file for bankruptcy. In some cases, bankruptcy can eliminate
the debt owed on a secured loan, but you may risk losing the property to the
lender. Legally, lenders are allowed to seize and liquidate some of your assets
in order to fulfill the debt payments of a secured loan. However, there are
many states whose bankruptcy laws may offer exemptions for some of your assets.
Bankruptcy exemptions may allow for your home and car can be protected from
liquidation during bankruptcy.
The most important thing to remember about defaulting on a
secured loan, is that time is crucial for protecting your assets. Once you
realize you may not be able to make your payment, contact your lender and
discuss negotiating a modified repayment plan. Many lenders prefer to modify a
repayment plan that better suits your budget, than risk losing money through
selling the property through foreclosure or repossession. If your lender is not
willing to negotiate, seek counsel from a qualified bankruptcy attorney.
Unsecured Loans
Unsecured loans are loans that do not have any collateral
used against the loan. The loan is unsecured because it is based on your
promise to repay the debt. In an unsecured loan, the lender is not given any
rights to seize or liquidate a specific asset. If you default on the loan, the
lender may make debt collection efforts but are not afforded the right to
reclaim any of your property.
Unsecured Loans And Bankruptcy
Unsecured loans are much easier to have discharged through
bankruptcy than a secured loan. A bankruptcy can eliminate most of your
unsecured debt. In some cases, the bankruptcy court may decide to allow for
some of your assets to be liquidated to fulfill debt payments. However,
bankruptcy laws offer exemptions to protect most of your assets in bankruptcy.
As in a secured loan, a bankruptcy will protect your assets as you make
payments towards the debt.
