Unsecured Claim
/ˌʌnˈsɪkjʊərd kleɪm/
Definitions
- (n.) A claim against a debtor that is not backed by collateral, ranking lower in priority for repayment during bankruptcy.
The unsecured claim holders received only a fraction of their debts after the company filed for bankruptcy.
Forms
- unsecured claim
- unsecured claims
Related terms
See also
Commentary
Unsecured claims commonly arise in bankruptcy and restructuring contexts; specifying the absence of collateral is essential for distinguishing repayment priority.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.