undersecured debt

Definition of "undersecured debt"
  1. A debt where the value of the pledged collateral is less than the amount owed on it
How to use "undersecured debt" in a sentence
  1. The homeowner's mortgage reached a state of undersecured debt due to dropping property values.
  2. Bankruptcy courts often have to deal with claims of undersecured debt.
  3. With the depreciation of his vehicle's value, his car loan became an undersecured debt.

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