Posted by Ryan M. Newburn | Jul 19, 2022 |
When taking out loans, there are two types of debts: recourse and non-recourse. Recourse debt holds the borrower personally liable, and all other debt is considered non-recourse. It seems simple enough, but the average borrower might not have heard of the two different types, let alone which type of debt they may have.
These types of debts can be applied to:
Loans
Mortgages
Credit Cards
Any other types of debt
It is important that you understand what kind of debt you have, as that will help you understand your obligations and what could happen in different situations. This article discusses both types of debts, subtypes, similarities, differences, and how each kind of debt works.
If you are unsure which type of debt is better for your situation, it is important to consult an experienced finance lawyer. Our legal team here at Newburn Law can help you understand what works best for you.