February 8th, 2011 by Questions
I was wondering if my loans have gone to court with the collection agency is this considered secure or unsecured dept?
Posted from: Ontario
February 09, 2011 at 9:59 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
Going to court doesn’t make a debt secured. To be a secured debt you have to have pledged the asset as collateral against the loan in question. Going to court is simply one way that unsecured creditors can try to enforce their collection rights. The court can give the ability to garnish wages or lien property (although a lien still doesn’t turn the debt into a secured one, it just establishes a priority for the registered creditor.
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