Legal Corner

-List Your Site Here! -- Targeted Advertising For Just Pennies A Day! -Tell A Friend - Bookmark This Page

LegalCornerTM - Bankruptcy Basic Facts F.A.Q.'s

Find A Lawyer
Law Area:




Search By:


Q.What is a Secured Debt versus an Unsecured Debt?

A.A secured debt is a debt backed by collateral, mortgage or lien. With a secured debt, if the borrower fails to pay the loan or debt in a timely manner, the lender has the right to reclaim a specific piece of property (e.g., if a debtor fails to pay his or her mortgage, the lender can reclaim the property; if the debtor fails to pay a car loan, the lender can repossess the vehicle). In a bankruptcy case, secured debts are repaid from the proceeds of the collateral securing the debt.

An unsecured debt is a debt for which there is no collateral, such as credit card debt and medical bills.

Copyright 1999-2018 Melissa C. Marsh. All Rights Reserved. All Information on this website is subject to a Disclaimer and Use Agreement. This information is provided as general information only and should not be construed as legal advice. We advise you to seek the advice of competent legal counsel to address your own specific questions, facts and circumstances.