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Unsecured Debt - If you simply promise to pay someone a sum of money at a particular time, and you have not pledged any real or personal property to collateralize the debt, the debt is unsecured. How do I know if a debt is secured, unsecured, priority or administrative? uscourts.gov ? faq ? how-do-i-know-if-... uscourts.gov ? faq ? how-do-i-know-if-...
Unsecured Creditors, like credit card issuers, suppliers, and some cash advance companies (although this is changing), do not hold a lien on its debtor's property to assure payment of the debt if there is a default. The secured creditor holds priority on debt collection from the property on which it holds a lien.
Some of the most common types of unsecured creditors include credit card companies, utilities, landlords, hospitals and doctor's offices, and lenders that issue personal or student loans (though education loans carry a special exception that prevents them from being discharged). Unsecured Creditor Defined, Types, vs. Secured Creditor - Investopedia investopedia.com ? terms ? unsecuredcreditor investopedia.com ? terms ? unsecuredcreditor
A creditor can ask the court to attach the debtor's bank account or real estate to satisfy judgment on an unsecured debt. This can be done with or without notice to the debtor. Collecting Secured and Unsecured Debts as a Creditor sederlaw.com ? collecting-secured-and-unsecured-... sederlaw.com ? collecting-secured-and-unsecured-...