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Secured means that there is some specific item pledged as collateral for that debt...frequently this is represented by some type of recoding of the pledge on official records. A car loan, with the car as collateral and the lender named as a lienholder on the title a good example. A mortgage on a property is another.
Unsecured just means there isn't a specific thing it has claim to first and before others...that it is general to all of your assets.
Note that if a secured creditor must sell the asset to recover, and the asset doesn't generate enough $ to pay the debt (which includes all interest, penalties and costs of having to take that action), the deficiency is an unsecured debt, which will be able to be paid by process..having your other assets sold.
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What is the difference between secured debt and unsecured debt?
A secured debt - is protected by being tied to something valuable (jewellery, car, house etc). If you default on the repayments, you could lose the item the debt is secured on ! An unsecured debt is not tied to any physical property. If you default on an unsecured debt, they will usually take you to court and have the debt recovered from your wages.
Can a creditor sue for unsecured debt?
* An unsecured debt, generally, is a debt that is not backed by collateral. For instance a car loan is secured by the security interest the lender has in the car. A credit card which is not backed by collateral is not secured by collateral therefore it is an unsecured debt. Generally, yes a creditor can sue for unsecured debt, the creditor just doesn't have any interest in the good that formed the basis of the loan.
What is unsecured personal indebtedness?
Unsecured personal indebtedness is debt that is not secured against an asset. For example, a mortgage is a debt secured against an asset, being a house. If you fail to pay your mortgage, your house will be taken of you. An unsecured debt is that of a loan or credit card bill which is not backed up by an asset.
Is Medical bills secured or unsecured debt?
Medical bills are unsecured debt. Regards, Adam Luehrs KL Financial Services http://www.klfinancialservices.com
How is secured lending different from unsecured lending?
Secured lending differs from unsecured lendings in a number of a ways, although there is one big difference between them. A secured lending is such named before the lendee puts up collateral against the debt to the bank. An unsecured lending has no collateral.
How does debt consolidation save a homeowner money?
It depends on the interest rate. It can save a homeowner money by turning unsecured debt into secured debt.
Can credit card companies garnish wages for unsecured debt in NE?
There is no such thing as unsecured debt. There is debt that is not secured by collateral. There is debt that is secured by your signature on a contract. And, yes, if the creditor has obtained a judgment against you for credit card debt, they may serve your employer with an order of garnishee and secure up to 25% of your paycheck per pay period.
If a car is reaffirmed and the secured to lender amount is 7500 and 3086 is unsecured is the secured paid under bankruptcy or owed by the buyer?
Reaffirmation of a secured loan means the borrower is responsible for repaying the entire debt. Not certain what "3086 is unsecured" means.
Can a student loan be considered a unsecured debt?
A student loan is an unsecured debt. To be secured, there needs to be something, generally phyisical (but not always), that can be taken (repossessed), and sold to satisfy the debt if it isn't paid. Kinda' hard to take back an education!
Can a debt collector sue for debt purchased below dollar value from original creditor in Texas?
If the debt was a secured debt, yes...if it was unsecured, doubtful they will do this unless it's a large sum of money.
What is the difference between unsecured and secured subordinated notes?
The first one is unsecured, the second one secured.
What is the difference between a secured and unsecured passwords?
Secured passwords may be encrypted, unsecured ones may not.
