Secured Debt Shall For Loan In Alameda
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If you can't or don't want to keep paying the secured debt, you have the option to surrender the collateral. This means you give the property back to the lender, and you're no longer responsible for the debt.
Secured debt is explicitly collateralized, placing a lien on specific assets, which facilitates enforcement. Unsecured debt is backed by unencumbered assets and thus implicitly collateralized. The explicit col- lateralization of secured debt entails costs but enables higher leverage.
Examples of secured debt include mortgages, auto loans and secured credit cards. Unsecured debt doesn't require collateral. But missing payments can still have consequences.
A credit card cannot be used to secure a debt because it represents unsecured debt, unlike physical items such as a house or a car, which can serve as collateral.
Why is a Mortgage Secured Debt? A mortgage is what's called a secured debt because it is backed up by collateral. In this case, the collateral is your home.
If you file for a Chapter 7 bankruptcy, your secured debt may be discharged, but the lender is also able to repossess the property that secured the debt. In other words, if you have a mortgage on your home and file a Chapter 7 bankruptcy, the mortgage debt may be discharged but the lender can take back your home.
