December 8th, 2008 by Reed Allmand 
Unsecured debt that has not been paid by a debtor will often go to court in an effort by the creditor to win a judgment. When a creditor wins a judgment against a debtor, that "unsecured debt" becomes "secured debt" and the creditor now has the right to take aggressive collection action against the debtor. With a judgment a creditor can garnish bank accounts, wages and place a lien on real estate or other property owned by the debtor making it impossible for the debtor to sell the property without paying the debt first. When a debtor files for Chapter 13 bankruptcy, the creditor with a judgment will file a secured claim with the bankruptcy court. Most times, in a chapter 13 bankruptcy, secured claims are paid first and in full, before any unsecured creditors.
If a creditor has won a judgment against you in court and/or has placed a lien against your wages, bank account or property, speak with a bankruptcy attorney immediately. The bankruptcy attorney may be able to file a motion to have the lien removed, especially if it is encumbering your ability to pay for basic expenses such as food, shelter and utilities.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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