Can Secured Debt Be Discharged in Bankruptcy?

It is a common misconception that all debts are dischargeable in bankruptcy. However, this is not the case. There are certain types of debt that cannot be discharged through bankruptcy, including secured debts. So, what exactly is a secured debt and can it be discharged in bankruptcy?

A secured debt is a debt that is backed by collateral. This means that if you default on the loan, the lender has the right to seize the collateral. The most common type of secured debt is a mortgage. Other examples of secured debts include car loans and lines of credit.

In general, secured debts cannot be discharged in bankruptcy. This means that even if you file for bankruptcy, you will still be responsible for paying off your outstanding balance. However, there are some exceptions to this rule.

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