Unsecured debts medical bills, credit cards, department store cards, personal loans, student loans, bounced checks
Secured debts "home", "auto".
Now as per rule you can only settle unsecured Debt
As in secured debt, a creditor will accept the promised property if a debtor is unable to pay. In case of real property (home or automobile) a creditor will be always on profit in a debtor will not pay the accept amount.
In case of unsecured debts such as medical bills, credit cards, department store cards, personal loans, student loans and bounced checks there is no loan promised attached in document. So unsecured loans are given to only good credit people.
In case of unsecured debts there is no guarantee that a creditor will receive anything form debtor.
