Life can be expensive, and there are many reasons that a person can get behind on their bills, such as losing a job, having a kid, or paying for college. Whatever the reason, when a person goes into debt, they will need to find a way to resolve this issue. One of the ways that people receive extra time to pay back debt is by getting loans. There are a variety of loans with different rules, depending on what kind of loan you need. Here are some of the loans you may consider getting when you’re in debt.
First Lien Loan
A first lien is the first loan that needs to be repaid when a borrower doesn’t follow their loan agreement and has to use their collateral asset or property to pay off the debt. There are different assets that can be used for this loan, but the most common is a person’s mortgage. If a property owner can’t pay their mortgage, the mortgage lender will foreclose their home; the lender will be the first person to receive money from this sale. First lien loans are less risky for the lender than other lien loans. There are also first lien debt Connecticut attorneys that can assist so that the process is executed fairly.
Second Lien Loan
Second lien loans, otherwise known as junior debt, have a lower priority of repayment than first lien debts. These loans may be in the form of loans from a bank or through the sale of bonds to investors. Since first lien loans get payed first, second lien loans have a higher risk, meaning they usually have a higher borrowing rate. Borrowers will need to pledge assets to secure this loan, which poses a risk to them if they fall behind in payment of the debt. In addition, second lien loans normally have stricter rules for getting approved.
First lien debt Connecticut lawyers have the skills to help borrowers sort through their financial problems. First lien debt Connecticut lawyers can help negotiate deals with creditors, handle lawsuits from credit card companies, and help clients file for bankruptcy if absolutely necessary. If you’re having financial problems, make sure to contact a first lien debt Connecticut attorney.