Ed Shaw Law - No Nonsense Legal Advice
Call 800-507-0352 To Schedule A Consultation
To Schedule A Consultation
Offices in St. Cloud and Brainerd, serving all surrounding areas
Coronavirus Impact and Assurance: Yes! We are still open for business!

As you are all aware, we are currently facing unique challenges due to the Coronavirus. While this is a serious crisis, it is important to keep it in perspective, and not allow it to prevent us from going about our business. We want to assure all of our clients that this office is prepared to serve your needs, regardless of what happens and how the virus affects Minnesota. In an effort to keep the office safe, we have stepped up prevention and sanitation measures in hopes to prevent disease transmission.

Because we are a paperless office, our entire staff is prepared to work from home if necessary. No matter what happens, we will continue to provide our clients with the highest quality legal services.  So far, not one client or staff member has become infected based on contact at this office and we will continue with safety protocols in an attempt to keep it that way. My office will continue to put the safety of our staff and you as our top priority. We do greatly appreciate your cooperation in conducting business in a safe fashion by utilizing current technology. Regardless of what happens, we will continue to take care of all of your legal needs.

Please rest assured, we will continue to take care of your legal needs in this challenging time, and your safety is our highest priority.

Please see our blog for more info on pandemic response.

Understanding secured and unsecured debt

| Sep 9, 2020 | Bankruptcy

A consumer struggling to keep up with their bills may at times fall further into debt despite their best intentions and efforts. Depending on the circumstances, a consumer bankruptcy may offer the help a person needs to get out from under debt and set forth on a fresh financial path.

When choosing between a Chapter 7 and a Chapter 13 bankruptcy plan, a consumer should learn about the difference between types of debt.

Understanding secured debt

Examples of secured debt include automobile loans and home mortgages. Bankrate explains these forms of debt are called secured because they are directly linked to tangible assets that may be repossessed if the consumer fails to make payments. In a Chapter 7 bankruptcy, these assets may be seized to help repay the creditors. This does not occur in a Chapter 13 bankruptcy.

Understanding unsecured debt

According to The Motley Fool, an unsecured debt has no relation to any specific asset. No repossession may occur should the consumer miss or fall behind on their payments. Examples of unsecured debt include medical bills and most credit cards. A Chapter 7 bankruptcy discharges a person’s unsecured debts with no need for repayment at any time.

Interest rate differences

Because a secured debt offers a creditor some assurance of repayment or recourse should a consumer default on the credit, the creditor may extend lower interest rates to the consumer. Unsecured debts generally come with less favorable terms and higher interest rates in exchange for the greater risk accepted by the creditor. A consumer’s credit score and history may also factor into the interest rate they receive on these accounts.

FindLaw Network