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 Idaho, 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. Creditors may still pursue repayment of unsecured debts through legal means such as filing a lawsuit. If the creditor wins the lawsuit, they may obtain a judgment which can lead to wage garnishment, bank levies, or other collection actions within the boundaries of Idaho state law and federal regulations. However, without a court judgment, the creditor's ability to collect on unsecured debt is limited compared to secured debt, where the creditor has a direct interest in the collateral.