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Unsecured debts - In bankruptcy, debts such as open accounts at department stores for which the debtor has not pledged collateral to guarantee payment.
To qualify, an individual must have unsecured debts (those not backed by collateral to guarantee their repayment) of less than $100,000 and secured debts (backed by collateral) of less than $350,000.
by the court, the current assets are counted up by the trustee (with many of them exempt from bankruptcy), who pays debts to the extent possible with priority for taxes, then secured debts (mortgages or some judgments), and finally unsecured debts.
 See also: Unsecured, Bankruptcy, Bankrupt, Collateral, Statute
  
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