What’s the difference between secured and unsecured debt?

Secured debt is a claim that's secured by some type of property, either by an agreement or involuntarily with a court judgment or taxes. Creditors can generally claim the property (and take it to pay off the debt ) in the event of bankruptcy.  Unsecured debt is not tied to any type of property, and the creditor can't claim it if you file for bankruptcy.  A mortgage is a secured debt on you property.


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