Recourse debt is debt:

Recourse debt refers to a type of borrowing where the borrower is personally liable for the debt. This means that if the borrower defaults on this loan, the lender has the legal right to pursue the borrower's personal assets in order to satisfy the debt. This contrasts with non-recourse debt, where the lender's recovery is limited to the collateral securing the loan, and the borrower is not personally responsible for any deficiency resulting from a default.

In the context of tax implications, understanding whether debt is recourse or non-recourse is crucial, as it affects how liabilities are treated on financial statements, as well as potential tax deductions or consequences related to debt forgiveness. In many situations, recourse debt may provide the lender with more security, as they can tap into the debtor's personal wealth beyond the collateral. This understanding forms an important part of financial literacy for both individuals and businesses when analyzing credit options and their implications.