Ohio residents may be interested in how a creditor could legally collect on a debt when there is no property securing that debt. While it may take a trip to the courthouse, a judgment against the debtor could cause serious trouble if not addressed.
There are two main types of debts. A secured debt is one that allows a creditor to sell or reclaim a piece of property if the debt is not paid, such as a home mortgage or auto loan. An unsecured debt, however, is one that is not backed by collateral property. When the debtor fails to make the required payments, the creditor has no property to reclaim as payment on the debt.