Unsecured creditor

Insolvency

Insolvency processes

* Administration
* Bankruptcy
* Chapter 7 (US)
* CVA
* Conservatorship
* Dissolution
* Examinership
* IVA
* Liquidation
* Provisional liquidation
* Receivership

Officials

* Insolvency practitioner
* Tribunal
* Regulatory agency
* Liquidator
* Referee in Bankruptcy
* Trustee in bankruptcy

Claimants

* Creditor
* Preferential creditor
* Secured creditor
* Unsecured creditor

Restructuring

* Administration (UK)
* Chapter 11 (US)
* Cram down
* Restructuring
* Scheme of arrangement

Avoidance regimes

* Fraudulent conveyance
* Undervalue transaction
* Unfair preference
* Voidable floating charge

Offences

* Fraudulent trading
* Misfeasance
* Trading while insolvent
* Wrongful trading

Security

* Floating charge
* Lien
* Mortgage
* Second lien loan
* Security interest

International

* Chapter 15 (US)
* Cross-border insolvency
* Insolvency Regulation
* UNCITRAL Model Law

By country

* Australia
* BVI
* Canada
* Cayman
* China (Hong Kong)
* India
* Ireland
* Russia
* Switzerland
* United Kingdom
* United States

Other

* Anti-deprivation rule
* Bankruptcy alternatives
* Creditors' rights
* Chapter 9 (US)
* Debtor
* Default
* Financial distress
* History of bankruptcy law
* List of bankrupts
* Pari passu
* Pre-packaged insolvency
* Sovereign default
* Subordination

* v
* t
* e

An unsecured creditor is a creditor other than a preferential creditor that does not have the benefit of any security interests in the assets of the debtor.[1]

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 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 can (and in some jurisdictions, must) set off the debts, putting the unsecured creditor with a matured liability to the debtor in a pre-preferential position.

## See also

* Preferential creditor
* Secured creditor

## Footnotes

1. ↑ "Definition: unsecured creditor". Investopedia. http://www.investopedia.com/terms/u/unsecuredcreditor.asp.

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