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 Massachusetts, 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. Creditors may still pursue repayment of unsecured debts through legal means such as filing a lawsuit and obtaining a court judgment. Once a judgment is obtained, a creditor might then be able to garnish wages or levy bank accounts, subject to Massachusetts state exemptions and federal law. It's important to note that Massachusetts has specific statutes that govern debt collection practices and consumer protections, such as the Massachusetts Consumer Protection Act (Mass. Gen. Laws ch. 93A) and the Fair Debt Collection Practices Act at the federal level, which set out the rules that creditors and debt collectors must follow when attempting to collect debts.