Unsecured Debts are not secured by collateral. Whether a particular debt is secured or unsecured depends on the terms of the credit or loan agreement. Chapter 7 bankruptcy and Chapter 13 bankruptcy can often provide debt relief remedies for unsecured debts, such as credit card accounts, unsecured loans, and medical debt.
Chapter 7 bankruptcy gives qualifying debtors the ability to eliminate many types of unsecured debt by obtaining a court order that has the legal effect of eliminating the debt. This "order of discharge" prevents subsequent collection of the discharged debt. Chapter 13 bankruptcy gives the debtor the ability to pay unsecured creditors over a fixed period of time. Some Chapter 13 debtors are permitted to discharge part of their unsecured debt.