If a debtor who purchases an item with unsecured credit defaults on the loan,the creditor's only means of recourse is to sue the debtor to try to recover the unpaid loan amount.

Question

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Since the purchase was made with unsecured credit, the creditor does not have any collateral to seize and can only attempt to recover the unpaid loan amount through legal means such as suing the debtor.

If a Debtor Who Purchases an Item with Unsecured Credit