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 New York, 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 judgment against the debtor. Once a judgment is obtained, the creditor may be able to garnish wages, levy bank accounts, or place liens on property, subject to New York's exemption laws that protect certain assets from creditors. It's important to note that while unsecured creditors have these legal avenues, the process is more complex and less direct than for secured creditors, who have specific collateral they can claim.