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 West Virginia, as in other states, 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 be able to garnish wages, levy bank accounts, or take other legal actions to collect the debt. However, these actions are subject to state laws that may provide certain exemptions to the debtor, protecting specific assets or amounts of income from creditors. It's important to note that while creditors of unsecured debt have legal means to pursue repayment, they are generally considered lower priority compared to secured creditors in situations such as bankruptcy proceedings.