Can a Creditor Sue Me For Unsecured Debt – Advice on Being Sued For Unsecured Debt
First of all we need to be clear about what is meant by unsecured debt. Most loans and debts will fall into one of two categories, secured or unsecured. A secured loan is secured against some asset you own, usually your home. What it means is that if you default on the loan, you can lose the asset. A mortgage is a loan secured against your house, and if you fail to keep up payments, your home can be sold to repay the debt. If you own your own home, It is generally much easier to get a secured loan, because the lender knows that even if you default on payment they can get their money back by selling your home. Loans can also be secured against other property, such as your car.
