unsecured creditor
Definition
Creditor who extended credit to a debtor without a 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.
unsecured creditor is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
unsecured creditor appears in the definitions of the following terms: compulsory liquidation, liquidator, creditors' voluntary liquidation, arrangement, Chapter 13, liquidation and members' voluntary liquidation
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