In the context of a deceased person's Estate, secured debt is typically a mortgage secured by real estate, a car loan secured by vehicles, or other loans secured by valuable property.
If the deceased's estate lacks sufficient Assets to pay the secured debt, or beneficiaries are unable to pay it themselves, then the Creditor, may have the right to claim or sell the collateral, or pursue legal remedies to recover the remaining balance.
During probate, debts are prioritized based on state laws or the terms of the secured agreement. Generally, secured debt is given priority over Unsecured Debts. However, probate laws differ in each state and and regulations can vary.
Outstanding debt can be challenging to navigate and so it's advisable to consult with an Estate Attorney to help navigate the process and ensure that applicable laws are adhered to.