An unsecured debt has no collateral secured against it.  In the event that the debtor defaults on the loan there is no collateral to foreclose on.  There are 2 principal types of unsecured debts Credit Cards, Personal Loans and some debt consolidation loans.  Generally unsecured creditors rights are secondary to secured creditors in an bankruptcy [...]

Collateral refers, generally to an asset provided as a guarentee by a debtor for the repayment of a loan.  EG, a car is the collateral for a debt consolidation loan. [Bankruptcy] [Debt Consolidation] [Debt Consolidation Loans]