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 South Carolina, 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 recover the owed amount. Common examples of unsecured debt include credit card debt, medical bills, and personal loans. Creditors may still pursue repayment 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 or levy bank accounts, subject to state exemptions and federal law. It's important to note that South Carolina has specific statutes of limitations that govern how long a creditor has to take legal action on unsecured debt, which is generally three years for most types of unsecured debts. However, this period can vary depending on the type of debt and the circumstances surrounding it.