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 Maryland, 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 the court system. This could involve filing a lawsuit and obtaining a judgment against the debtor. Once a judgment is obtained, the creditor may use various legal methods to collect the debt, such as wage garnishment or bank account levies. However, these actions must comply with Maryland's laws and regulations, which include certain exemptions and protections for debtors. It's important to note that while creditors of unsecured debt have fewer immediate remedies compared to secured creditors, failing to pay unsecured debt can still have significant legal and financial consequences for the debtor.