When a debtor defaults, a secured creditor can relinquish the security interest but cannot then seek a judgment on the underlying debt.

Name: When a debtor defaults, a secured creditor can relinquish the security interest but cannot then seek a judgment on the underlying debt.
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A secured creditor can choose to relinquish their security interest and pursue a judgment on the underlying debt, often through a lawsuit, to recover the amount owed by the debtor.

When a Debtor Defaults, a Secured Creditor Can Relinquish the Security