Unsecured Claim | Practical Law

Unsecured Claim | Practical Law

Unsecured Claim

Unsecured Claim

Practical Law Glossary Item 0-382-3896 (Approx. 2 pages)

Glossary

Unsecured Claim

A claim held by a creditor who does not have a perfected lien or a right of setoff against the debtor's property. There is no collateral securing the claim. Unlike general unsecured claims which have no priority, unsecured claims may or may not have priority. For example, certain claims and wages of employees are unsecured claims with priority, while most trade claims are unsecured claims without priority.