When filing bankruptcy, it is important to know the difference between your secured and unsecured debt. Secured debt and unsecured debt may be treated differently, particularly if your are trying to keep the collateral which secures the debt, like a car or home.
Secured Debt: A secured debt is a debt that is backed by a mortgage, pledge of collateral, or other lien, including a properly recorded judgment lien. It is a debt for which the creditor has the right to pursue specific pledged property upon default. Typically, things like a car or a house are used as collateral to secure consumer loans.
Unsecured Debt: If you have simply promised to pay someone a sum of money at a particular time and have not pledged any property, it is an unsecured debt. This may include a judgment that is not secured by a lien. Typically, things like medical bills and gas or electric bills are unsecured debts.