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

Question

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Since the creditor had to sue the debtor to collect the repayment of the debt, it indicates that the loan was unsecured credit. An unsecured loan is not backed by any collateral, and hence, the creditor has no way to seize any asset of the debtor in case the borrower defaults on the loan.

In Order to Be Put into a Position to Collect