Secured Creditors Unsecured Creditors - What's the Difference?

A "secured creditor" is one that has a lien on property such as a home or car. A lien is an interest in property that a creditor can use to satisfy a debt. Liens can be voluntary (mortgage or auto loan) or involuntary (a lien on property resulting from unpaid taxes or a judgment). A secured creditor stands in a superior position to the debtor. If the debtor does not make timely payments, the creditor can foreclose on their interest and recover the property.

An "unsecured creditor" is a creditor who has no interest in any particular property of the debtor. Unsecured creditors are paid either voluntary by debtors or they must receive a judgment through the court in order to collect on a debt via garnishment or seizure. Obviously, the secured creditor has a much greater protection than an unsecured creditor in that the lien on the debtor's property is usually honored.

In either case, a debtor with creditors may become financially insolvent. At that time, he can either work out a payment arrangement, file for bankruptcy protection under chapter 7 or chapter 13 of the U.S. Bankruptcy Code, or he can do nothing and hope the creditors don't pursue collection.

When faced with serious debt to the point of no return, consider speaking confidentially with an experienced bankruptcy attorney. Bankruptcy law has become a select area of the law and there is plenty to learn. Most attorneys will not charge for the initial consultation. You can also learn from website videos and tutorials from seasoned bankruptcy attorneys.

02 Dec 2008 01:29:02

It's A Share About Pilgrim's Pride - Forbes

Dividend.com It's A Share About Pilgrim's Pride Forbes, NY - Chicken producer Pilgrim's Pride decided the heat from creditors was too high, so it flew to the protection of bankruptcy court on Monday. ... Straight talk on Chapter 11 Pilgrims Pride Files for Bankruptcy Pilgrim's files for bankruptcy, weighs on rivals -

Source: http://forbes.com/markets/2008/12/01/pilgrims-pride-bankrupt~.html

01 Dec 2008 19:03:15

Creditors give Buckland mall owner a two-week debt reprieve - Journal Inquirer

The Star-Ledger - NJ.com Creditors give Buckland mall owner a two-week debt reprieve Journal Inquirer, CT - ... of its short-term debt, or face the possibility of filing for protection from creditors in US Bankruptcy Court, if it is to continue as a going concern. ... General Growth gets 2-week extension on $900 million in loans General Growth gets loan extension

Source: http://journalinquirer.com/articles/2008/12/01/business/doc4~.txt

01 Dec 2008 02:09:39

Creditors meet to learn cost of Kaupthing's loans - guardian.co.uk

guardian.co.uk Creditors meet to learn cost of Kaupthing's loans guardian.co.uk, UK - Creditors are scheduled to attend a meeting at the Piccadilly venue to learn about their chances of recouping losses from the British arm of Kaupthing ... British charities form fund recovery group Iceland crisis freezes charity work First Victory for Charities' Group! -

Source: http://guardian.co.uk/business/2008/dec/01/kaupthing-credit-~

28 Nov 2008 01:25:59

Mexico Comerci's creditors want all their money back - Reuters

Reuters Mexico Comerci's creditors want all their money back Reuters - The retailer's creditors include six banks that backed up its trading in derivatives for over $1 billion, five banks that extended loans, as well as bond ... UPDATE 1-Mexico's Comerci to present restructuring plan - source UPDATE 1-Grupo Mexico plan for Asarco changes on copper fall Mexican stocks rise, boosted by Cemex

Source: http://reuters.com/article/rbssFinancialServicesAndRealEstat~

Keywords: