Which one you choose will depend upon your individual goals and circumstances and what is best for you. Secured debts are those that are associated with a specific piece of property. Items such as homes, cars and appliances are likely to be secured items. Some charge cards also have security agreements. Sears and Foley's generally claim a security interest in the items which are purchased with their cards.
Unsecured debts are virtually all other debts owed.
Visa, MasterCard, American Express and medical bills are generally items which are unsecured debt. In a chapter 7 bankruptcy the unsecured debts can be liquidated. People frequently want to know if they will be able to keep their house when filing a chapter 7 bankruptcy. The answer is, it depends. It depends upon whether you can continue paying the debt and if the Bankruptcy trustee will allow it.