William D. Schroeder Jr., Bankruptcy Lawyer in Bucks County Describes the Different Types of Creditor Claims


In bankruptcy, there are three main types of claims that creditors can make: secured claims, unsecured, or priority claims. William D. Schroeder Jr., a bankruptcy lawyer in Bucks County, is experienced in all matters of bankruptcy law and can guide you with all kinds of information, including the three different types of debt.

  1. Secured Claims

If a creditor has a lien, known as a security interest, on an individual’s property, then it means their claim is secured in the bankruptcy. These types of claims can either be involuntary or voluntary. If an asset is pledged as the collateral when debt is acquired, the individual facing bankruptcy will be able to keep the property and force a repayment plan upon the creditor.  Or, the debtor could decide to give the property to the lender and be free of any claim.  A creditor can enter a lien by obtaining a judgment against the debtor in a law suit. Common secured claims include car loans, mortgages, judgments, unpaid property taxes, and other liens.

  1. Unsecured Claims

In an unsecured claim situation, the creditor does not have a lien against property, and thus, the debts are not secured by collateral. Instead, the creditor will not be paid by the individual facing bankruptcy; the debt will be discharged and the creditor will get nothing or very little at best.. Examples of unsecured claims include personal loans, medical bills, and credit card debt.

  1. Priority Claims

As the name indicates, priority creditors are paid before the unsecured claims and sometimes before a secured creditor. These creditors receive special treatment in bankruptcy situations because they are unsecured debts that are not discharged. Moreover, the debt from these types of claims must be settled and paid after the bankruptcy is filed. Priority claims that are common in bankruptcy include alimony, , child support, tax obligation as well as certain personal injury/death situations.

When a creditor is looking to get paid, they often contact individuals facing bankruptcy; a Chapter 7 or Chapter 13 stays this collection action. Debts then get categorized into the three basic categories: secured, unsecured and priority. William D. Schroeder, Jr., bankruptcy lawyer in Bucks County, not only helps individuals dealing with debt understand the different types of creditors and claims but will also explain to the client what will be discharged and what must be paid and how it will be paid.  Harassment, phone calls, letters, law suits and garnishment will stop with the bankruptcy filing. To learn more about William D. Schroeder Jr. visit his website at https://www.jrlaw.org/ or contact him directly at:

William D. Schroeder, Jr. Attorney at Law
262A Bethlehem Pike, Suite 102
Colmar, PA, 18915
Ph. 215.822.2728