What is secured debt and why is it permitted in DA?
Secured debt is debt that is backed up by a form of property, called collateral, with a legally binding contract in which the creditor may take that property if the debt is not paid, even if the debtor does not want it taken. Secured debt is permitted in DA in order to allow debtors to make major purchases such as cars and homes. We have found that recovering debtors can use secured debt responsibly when they use the Steps and Tools.
