Unsecured creditor

Unsecured creditor

An unsecured creditor is a creditor which is not a preferential creditor and which does not have the benefit of any security interests in the assets of the debtor.

In the event of the bankruptcy of the debtor, the unsecured creditors usually obtain a "pari passu" distribution out of the assets of the insolvent company on a liquidation in accordance with the size of their debt after the secured creditors have been enforced their security and the preferential creditors have exhausted their claims.

Although in a liquidation the unsecured creditors will usually realize the smallest proportion of their claims, in some legal systems, unsecured creditors who are also indebted to the insolvent debtor are able (and in some jurisdictions, must) set-off the debts, which actually puts the unsecured creditor with a matured liability to the debtor in a pre-preferential position.

ee also

* Secured creditor
* Preferred creditor

Wikimedia Foundation. 2010.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • unsecured creditor — see creditor Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. unsecured creditor …   Law dictionary

  • unsecured creditor — a creditor who extended credit to a debtor without collateral security. If the debtor files for bankruptcy or is levied upon, the unsecured creditors are paid on a pro rata basis only after the claims of all secured creditors are satisfied… …   Glossary of Bankruptcy

  • unsecured creditor — ➔ creditor * * * unsecured creditor UK US noun [C] FINANCE ► a person or organization that has lent money and has no right to the property or other assets of the borrower if the money is not paid back: »Following the bankruptcy, it s too early to …   Financial and business terms

  • Unsecured Creditor — An individual or institution that lends money without obtaining specified assets as collateral. This poses a higher risk to the creditor because it will have nothing to fall back on should the borrower default on the loan. A debenture holder is… …   Investment dictionary

  • unsecured creditor — A person who is owed money by an organization but who has not arranged that in the event of non payment specific assets would be available as a fund out of which he or she could be paid in priority to other creditors. Compare secured creditor …   Big dictionary of business and management

  • unsecured creditor — /ˌʌnsɪkjυəd kredɪtə/ noun a creditor who is owed money, but has no security from the debtor for the debt …   Dictionary of banking and finance

  • unsecured creditor —   creditore chirografaro   Titolare di un credito nei confronti di un soggetto che abbia presentato istanza di fallimento, per il quale non possiede nessuna garanzia. Questo credito potrà essere soddisfatto esclusivamente quando saranno stati… …   Glossario di economia e finanza

  • unsecured creditor — A person who is owed money by an organization but who has not arranged that in the event of non payment specific assets would be available as a fund out of which that person could be paid in priority to other creditors …   Accounting dictionary

  • general unsecured creditor — USA unsecured creditor, Also known as general creditor and general unsecured creditor. A creditor holding an unsecured claim, or having no liens against a debtor s property. Unsecured creditors have no rights against specific property of the… …   Law dictionary

  • ordinary unsecured creditor — A general creditor who has no priority, no preferred treatment and no security (Ontario Bankruptcy Dictionary) United Glossary of Bankruptcy Terms 2012 …   Glossary of Bankruptcy

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”