unsecured creditor
- A category of lender that doesn't have collateral or a claim on a specific piece of property
- In the event of bankruptcy, the unsecured creditor may not be able to recover their debt.
- A credit card company is typically an unsecured creditor since they don't have any claim on specific assets.
- If the unsecured creditor can prove that their debt was incurred dishonestly, they might be able to bypass the bankruptcy protections.
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