what happens if creditors are not repaid 
secured creditors often a bank or mortgage company have a legal right to reclaim the property such as a car or home used as collateral for a loan often through a lien or repossession an unsecured creditor such as a credit card company is a creditor where the borrower has not agreed to give the creditor any property such as a car or home as collateral to secure a debt these creditors may sue these debtors in court over unpaid unsecured debts and courts may order the debtor to pay garnish wages issue a bank levy or take other actions creditors and bankruptcybankruptcy is a legal process through which individuals who cannot repay debts to creditors may seek relief from some or all of their debts bankruptcy is initiated by the debtor and is imposed by a court order 