General Unsecured Claim | Practical Law

General Unsecured Claim | Practical Law

General Unsecured Claim

General Unsecured Claim

Practical Law Glossary Item 5-382-3511 (Approx. 2 pages)

Glossary

General Unsecured Claim

A creditor's claim which is not secured by any collateral and for which there is no priority for payment (they are neither administrative claims nor priority claims). If there are estate funds available to pay creditors holding such claims, they are paid pro rata with the total claims in the class of general unsecured claims. A typical example is debt owed to trade vendors for the sale of goods.