What is secured debt versus unsecured debt?
Secured debt is any debt that is collateralized by another asset. The most common examples are car loans, home equity loans and credit cards secured by a bank account. When a debt is secured the creditor can obtain the right to sell the asset in order to fully repay the debt. New Leaf Debt can negotiate unsecured debt only, however there are some occasions, such as a car loan balance left after repossession, where secured debt becomes unsecured and is then negotiable. New Leaf Debt frequently negotiates credit card debt, medical bills and personal loans. Occasionally tax debt can be forgiven. Only in very dire instances can student loans be forgiven.
