Unsecured creditor
A creditor with no security interest over the debtor's property, paid last in an insolvency.
Most suppliers who have not registered on the PPSR are unsecured creditors. They rank behind the banks, equipment financiers and employees, and in most small-company liquidations receive little or nothing.
Related terms
- Liquidation — The winding up of a company: its assets are sold and the proceeds paid to creditors in a fixed order.
- Proof of debt — The form a creditor lodges with an administrator or liquidator to claim what it is owed.
Need this registered, not just defined?
Free check: am I covered?