According to the Internal Revenue Service (IRS), all debts (and thus all loans) can be divided into two types: recourse and non-recourse. A recourse loan means that the borrower is personally liable for the debt, even after the lender takes whatever collateral was put up against the loan. For example, let’s suppose that you took …
The Internal Revenue Service (IRS) splits all forms of debt from loans into two categories: recourse and non-recourse. With a recourse loan, the person who borrows the money is personally liable for the loan’s full value. With a non-recourse loan, they are only on the hook to pay back whatever collateral covers the debt. The …
The Internal Revenue Service (IRS) classified all debt as either recourse or non-recourse. Though that little prefix “non-” is small, its effect is enormous. Essentially, non-recourse loans protect the borrower from being relentlessly pursued for repayment in the event of a default, according to the Washington and Lee Law Review. A non-recourse loan is simply …
