general creditor

Definition of "general creditor"
  1. A person or entity to whom money is owed, but does not have a specific claim on any of the debtor's assets or properties
How to use "general creditor" in a sentence
  1. If a company declares bankruptcy, a general creditor may only be compensated after secured creditors have been paid.
  2. The court will decide how to distribute remaining assets to general creditors if there aren't enough to cover all debts.
  3. Being a general creditor comes with a higher degree of risk as repayment is not guaranteed by specific assets or properties.

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