LIFE EVENTS
QUESTIONS

Creditors

Q.1. What is an unsecured creditor?
A.

An unsecured creditor is a person or institution who advances you credit without taking any rights against your property.

Q.2. What is a secured creditor?
A.

A secured creditor is a person or institution who holds a mortgage or a lien on or against the whole or part of your property as security for a debt.

Q.3. What claims do they have?
A.

Secured creditors are on the top of the bankruptcy claims scheme. They can apply for an order to take possession of their security. Unsecured creditors do not have priority. If the property of the estate is insufficient to compensate them, they may receive a portion of their compensation.