I defaulted on my apartment lease now I owe 10,000. Unsecured or secured debt?

[JJwinter]

I had a apartment a few years back and my roommates left early and I was unable to fulfill the remaining 6 months of the lease. The debt including lawyers fees is above 10,000. Is this a example of a unsecured debt or a secured debt? thank you for any help.

[yoyoma51]

I'm pretty sure this would be considered "unsecured" debt and therefore discharged in Ch. 7 bankruptcy.

[JJwinter]

I'm pretty sure this would be considered "unsecured" debt and therefore discharged in Ch. 7 bankruptcy.

Thats kind of what i assumed... the definitions I found were just so hazy it was tough! Thanks for the insight!

[Lindsay]

I'd also say unsecured.

[demismom]

I'd say unsecured as well.

[CindyLou]

Its unsecured. The only time something is secured, is if there is property that "secures" the loan. I other words, something they could reposses if you do not pay. You would also have to have agreed and signed a promissary note saying the property was securing the loan ahead of time.

Examples of secured loans are car loans and mortgages. Things like jewelry, furniture, and electronics can be secured or unsecured, depending on the terms of the purchase.

Now just to confuse things.....if a creditor sues you and gets a judgement or a lien against your property then the debt could be considered secured against that asset.

Hope this explanation helps.

[treehugger1]

Liens can be avoided and eventually vacated. I think liens on real property can be tricky, so speak with an attorney.

[emoney]

I would suggest a settlement offer in writing. Many unsecured debts can be settled for cents on the dollar.
We all should learn from this what happens when a person breaks a lease. The owner has a duty to attempt to release the apartment to cut the losses, but you are responsible for the difference. In a lawsuit if you do not answer the may get everything they are asking. Many times they are not due evertything, but you lost by not responding.
regards,
emoney

[CindyLou]

I would suggest a settlement offer in writing. Many unsecured debts can be settled for cents on the dollar.
We all should learn from this what happens when a person breaks a lease. The owner has a duty to attempt to release the apartment to cut the losses, but you are responsible for the difference. In a lawsuit if you do not answer the may get everything they are asking. Many times they are not due evertything, but you lost by not responding.
regards,
emoney

If the OP is considering BK then an offer would not be necessary...