A creditor who is owed a debt by an individual or a company that is not secured by a security interest over the individual's or the company's property.

In the context of personal and corporate insolvency, unsecured creditors rank lower in priority than secured creditors and may receive a payment from any remaining property after the debts of secured creditors are paid in full. Unsecured creditors in a corporate insolvency process most commonly include trade creditors (for example, suppliers).

For information on the general corporate issues that lenders and borrowers should be aware of when taking and giving security, including corporate benefit, financial assistance, related party transactions and voidable transactions, see Practice note, Taking security: general considerations.