Bankruptcy is designed to eliminate unsecured debt. If you have an unsecured debt and your creditor does not already have a lien (or claim) on any of your property then the creditor cannot repossess items once you file bankruptcy. Typical examples include credit card debt, bank loans, and medical bills.A secured debt, on the other hand, is a debt where an asset is held as collateral in order to reduce the lender's risk. The prime example is a mortgage. If you default on your mortgage payments, your mortgage lender has a lien on the property and can seek permission to foreclose on your home in order to recover the credit they extended to you. Filing bankruptcy does not prevent secured creditors from repossessing their collateral if you don't pay.