Undersecured Creditor | Practical Law

Undersecured Creditor | Practical Law

Undersecured Creditor

Undersecured Creditor

Practical Law Glossary Item 9-383-6192 (Approx. 2 pages)

Glossary

Undersecured Creditor

A creditor holding an undersecured claim. Undersecured creditors hold a secured claim to the extent of their collateral and an unsecured claim for the deficiency. In bankruptcy, such creditors are entitled to adequate protection of the secured portion of their claim. They are generally not entitled to be paid postpetition interest.