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Many people see the terms secured and unsecured debt when they’re maybe searching on online to learn about bankruptcy initially. And secured debt means something where the loan that you have is attached or secured to a a a tangible piece of property. It’s normally either a car or a house. So it what that means is a secured debt loan if you don’t pay it then they can take that item back. So loan is secured by your car. If you don’t pay it they can repossess the car. If you don’t pay your
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mortgage for a long a long enough time uh they can eventually foreclose on your house. Uh sometimes a a piece of land. Um you know, some people have other things that could be secured like solar panels or motorcycle or um you know, just uh anything that they’ve uh bought uh where they got that loan to purchase that item. An unsecured debt is just the opposite. It is a type of debt that isn’t attached to any kind of property. Um, so that would be credit cards, medical bills, collection accounts, uh,
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payday loans, most uh, judgments, uh, things like that. So, um, you know, an item where you obtain that loan, personal loans, uh, where you obtain that, uh, loan, but, uh, you didn’t have to pledge any type of collateral or anything to get that loan.
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