- Unsecured debt
finance, unsecured debt refers to any type of debtor general obligation that is not collateralized by a lienon specific assets of the borrower in a bankruptcyor liquidation.
In the event of the bankruptcy of the borrower, the unsecured creditors will have a general claim on the assets of the borrower after the specific pledged assets have been assigned to the secured creditors.
Although in a liquidation the unsecured creditors will usually realize a smaller proportion of their claims than secured creditors.
In some legal systems, unsecured creditors who are also indebted to the insolvent debtor are able (and in some jurisdictions, must) set-off the debts, which actually puts the unsecured creditor with a matured liability to the debtor in a pre-preferential position.
Wikimedia Foundation. 2010.
Look at other dictionaries:
Unsecured debt — Debt that does not identify specific assets that can be taken over by the debtholder in case of default. The New York Times Financial Glossary * * * unsecured debt unsecured debt ➔ debt * * * unsecured debt UK US noun [C or U] FINANCE ► debt for… … Financial and business terms
unsecured debt — debt that does not identify specific assets that the debtholder is entitled to in case of default. Bloomberg Financial Dictionary * * * unsecured debt unsecured debt ➔ debt * * * unsecured debt UK US noun [C or U] FINANCE ► … Financial and business terms
unsecured debt — A debt that doesn t give the creditor the right to take a particular item of property if the debtor doesn t pay. Examples include credit card debts and medical bills. Compare: secured debt Category: Bankruptcy, Foreclosure & Debt → Bankruptcy… … Law dictionary
Unsecured Debt — A loan not secured by an underlying asset or collateral. Unsecured debt is the opposite of secured debt. The concept of unsecured debt is easily understood when its opposite is considered. A good example of secured debt would be a mortgage. The… … Investment dictionary
unsecured debt — Debt obligations that are not backed by pledged collateral or security agreement … Black's law dictionary
unsecured debt — A debt that is not covered by any kind of collateral … Big dictionary of business and management
unsecured debt — Money borrowed on the general credit of the borrower with no pledge of specific assets that may be forfeited to the creditor if repayment is not made as promised. The only remedy available to a creditor is to sue and get a judgment. Compare… … Business law dictionary
unsecured debt — /ˌʌnsɪkjυəd det/ noun a debt which is not guaranteed by a charge on assets or by any collateral … Dictionary of banking and finance
unsecured debt — debito non garantito Debito per il quale non è prestata una precisa garanzia per il rimborso, se si esclude la reputazione del debitore, ad es. un prestito concesso per l acquisto di un immobile senza che sia stata iscritta alcuna ipoteca a… … Glossario di economia e finanza
Senior Unsecured Debt — Securities that have priority ahead of all other unsecured or subordinated debt in ranking for payment in the event of default … Financial and business terms