Creditors Rights Law

What Is An Unsecured Debt?

An Unsecured Debt generally arises out of a contract you enter into with a creditor that enables you to obtain goods or services on credit in exchange for your promise to pay that creditor back. The most common types of unsecured debt are: credit cards, medical bills and personal loans. If you fall behind on this type of debt, the only recourse the lender has is legal action.