Why Is The Borrower-Accountable Or False Debt?

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According to the IRS, a recourse debt holds the borrower personally liable. Thus, with recourse debt the lenders are allowed to hold the debtor accountable for any unpaid balance even after they have taken collateral (property that can be accessed by the lender in the event that the borrower goes in debt and fails to pay back the money that they borrowed). For example, a borrower might secure a personal loan for $500 by pledging a cellphone. If the borrower defaults, the lender can sell the cellphone to recover as much of the outstanding debt as possible. But if the cellphone only sells for $300, the lender may collect the unpaid balance of $200 by garnishing wages or levying the borrowers bank account in order to collect what is owed. Whereas,
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