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 Florida, 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 specific assets to satisfy the debt. Common examples of unsecured debt include credit card debt, medical bills, and personal loans. If a debtor fails to repay unsecured debt, creditors may attempt to collect the debt through collection agencies, court judgments, or garnishment of wages. However, Florida has specific exemptions that protect certain assets from creditors, such as homestead exemption for primary residences, and limitations on wage garnishment. It's important to note that while creditors of unsecured debt have fewer immediate remedies compared to secured creditors, they still have legal means to pursue repayment, including filing a lawsuit to obtain a judgment against the debtor.