What is a secured debt?

A secured debt is a type of debt that is protected by a specific type of collateral. Collateral is something of value that a debtor pledges to a creditor as security for a loan. This collateral is typically a piece of property such as a car or house, or another asset such as a savings account. If the debtor defaults on the loan, the creditor can then use the collateral to pay off the debt. Secured debts are governed by debtor and creditor law in Indiana. Under this law, the creditor has a lien on the property that is pledged as collateral. The creditor can repossess the collateral if the debtor defaults on the loan, and then use it to pay their debt. The creditor has the right to sue the debtor should the debtor default on their debt. In such cases, the court can decide the debtor must pay the creditor a certain amount to settle the debt. If the debt is not settled through negotiation or court ruling, the creditor can then seize the collateral to pay the debt. Debtors in Indiana must be aware of their rights in regards to secured debt. They should understand the implications of defaulting on a debt and should also familiarize themselves with the bankruptcy laws in Indiana. This will ensure they are able to protect their assets should they find themselves in financial difficulty.

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What is a secured debt?

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