What Is An Unsecured Debt?

An Unsecured Debt generally arises out of a contract you enter into with a creditor that enables you to obtain goods or services on credit in exchange for your promise to pay that creditor back. The most common types of unsecured debt are: credit cards, medical bills and personal loans. If you fall behind on this type of debt, the only recourse the lender has is legal action.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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