Some types of debt won't be available for settlement. For example, most secured loans won't go to settlement because lenders will resolve the debt by collecting on the collateral.nnLoans that include collateral are called secure because the collateral provides security for the lender. Some loans use the asset you're financing as collateral, known as a self-collateralized loan.nnFor example, if you default on a car loan, the lender repossesses the car. Defaulting on a mortgage will result in a foreclosure, which is the legal term for the process of a mortgage lender repossessing the property. Repossession and foreclosure go on your credit report and lower your credit scores.nnIt's also unlikely to reach a debt settlement for student loans. Discharging student loans in bankruptcy is impossible, so lenders have little incentive to settle.