Practical Law Glossary Item 9-612-0501 (Approx. 2 pages)
Glossary
Deficiency Claim
In bankruptcy, a general unsecured claim representing the portion of a secured creditor'sclaim amount that is not secured by collateral. For example, if a mortgage on a property is made for $1 million and the property is later valued at $700,000 while in bankruptcy, the secured mortgage lender would be considered an undersecured creditor, with a secured claim in the amount of $700,000 and a deficiency claim in the amount of $300,000.