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LSDefine

Simple English definitions for legal terms

undersecured debt

Read a random definition: Coram Rege Court

A quick definition of undersecured debt:

An undersecured debt is when someone borrows money and puts something valuable up as collateral, but the value of that collateral is less than the amount of money they borrowed. This means that if they can't pay back the loan, the lender might not be able to get all their money back by selling the collateral. For example, if someone borrows $1,000,000 but puts up a house that's only worth $800,000 as collateral, the loan is undersecured.

A more thorough explanation:

An undersecured debt is a type of debt that is secured by collateral, but the value of the collateral is less than the total amount of the debt. This means that the creditor may not be able to recover the full amount of the debt if the debtor defaults on the loan.

For example, let's say that a person takes out a loan for $100,000 to buy a car. The car is used as collateral for the loan, but it is only worth $80,000. This means that the loan is undersecured, because the value of the collateral is less than the total amount of the debt.

Another example of undersecured debt is a mortgage on a house. If the value of the house decreases over time, the mortgage may become undersecured, because the value of the collateral (the house) is less than the total amount of the debt (the mortgage).

Undercapitalization | underwrite

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i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
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the devil
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20:50
yo splitterus are you in school already
20:50
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JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
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im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
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JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
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22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
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JumpySubsequentDolphin
22:39
@splitty Oregon!
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JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
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