general creditor
- 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
- If a company declares bankruptcy, a general creditor may only be compensated after secured creditors have been paid.
- The court will decide how to distribute remaining assets to general creditors if there aren't enough to cover all debts.
- 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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