What is the meaning of “general unsecured debt”?

General unsecured debt, in the context of Washington law, is a type of debt that does not require a lien or other form of security to back it up. In other words, the debtor has not given any collateral (such as a house or car) in exchange for the money they borrowed. In the event that the borrower fails to pay back the loan, the lender has no legal right to seize the collateral. General unsecured debt is usually the result of credit card debt, medical bills, personal loans, or other types of debt that individuals incur when they need money or go beyond their means. Since the debt does not require collateral, lenders are usually not willing to take on this risk and are more likely to charge higher interest rates. In Washington, creditors have the right to pursue the collection of unpaid general unsecured debt and may take legal action against the borrower if they fail to make the necessary payments. If a court judgment is issued against the borrower, the creditor can then enforce this debt through wage garnishment and other collection methods.

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What is the meaning of “general unsecured debt”?

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