In order to be put into a position to collect repayment of a debt,a creditor has had to exert its contractual right to sue a debtor.In this instance,what is the nature of the loan?

Question

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If the creditor had to sue the debtor in order to collect repayment of the debt, it means that the loan was not secured by collateral, which would have given the creditor the right to seize and sell the collateral in case of default. Thus, the nature of the loan is unsecured, meaning that the creditor relied solely on the borrower's creditworthiness and promise to repay the debt.

In Order to Be Put into a Position to Collect