Unsecured Creditor | Practical Law

Unsecured Creditor | Practical Law

Unsecured Creditor

Unsecured Creditor

Practical Law Glossary Item 8-382-3897 (Approx. 2 pages)

Glossary

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 debtor. Also, they generally have no right to receive postpetition interest in a bankruptcy case. However, they do have several other rights, including the right to object to a DIP financing or sale of assets as an interested party in the case and the right to file an involuntary bankruptcy proceeding.