Definitions for "Unsecured Creditor"
A creditor without a lien. Unsecured claims may or may not have priority.
A lender who has not taken any security over specific assets of the borrower. Therefore, the repayment of the loan is totally dependent on the borrower’s ability and will to pay.
A creditor who has a claim which is not backed by collateral or a security agreement, sometimes referred to as a general creditor.