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unsecured debt

Unsecured debt is debt that is not secured or collateralized by specific assets that the lender or creditor may attach if you fail to repay the debt. For example, your credit card is an unsecured line of credit.

In California, unsecured debt refers to obligations that do not have collateral attached to them. This means that if a borrower defaults on the debt, the creditor does not have an immediate right to seize any specific property to satisfy the debt. Common examples of unsecured debt include credit card debt, medical bills, and personal loans. If a debtor fails to repay an unsecured debt, the creditor may attempt to collect the debt through other legal means, such as filing a lawsuit and obtaining a judgment. Once a judgment is obtained, the creditor may be able to garnish wages, levy bank accounts, or place liens on property. However, certain assets may be exempt from these actions under California law. It's important to note that while creditors of unsecured debt have legal means to pursue repayment, they are generally considered lower priority in bankruptcy proceedings compared to secured creditors, who have specific collateral to claim.

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Creditor / Debtor

unsecured debt

As a LegalFix Member You Will Be an Important Client of Local Law Firms

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California State Code

California State Code

Creditor / Debtor

unsecured debt

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