unsecured creditor

Definition of "unsecured creditor"
  1. A category of lender that doesn't have collateral or a claim on a specific piece of property
How to use "unsecured creditor" in a sentence
  1. In the event of bankruptcy, the unsecured creditor may not be able to recover their debt.
  2. A credit card company is typically an unsecured creditor since they don't have any claim on specific assets.
  3. 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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