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Some of the most common types of unsecured creditors include credit card companies, utilities, landlords, hospitals and doctor's offices, and lenders that issue personal or student loans (though education loans carry a special exception that prevents them from being discharged).
What is an Unsecured Claim? Unsecured claims are the opposite of secured claims: There is no property to seize, repossess, or foreclose upon. Examples of unsecured claims are child support debt, alimony debt, credit card debt, tax debts, and personal loans.
Thus, the main difference between secured and unsecured claims is the existence (or absence) of collateral that serves as a backing to the underlying loan or debt in the event of a default or non-payment by the borrower.
Secured Creditors are creditors that hold a lien on its debtor's property, whether that property is real property or personal property. The lien gives the secured creditor an interest in its debtor's property that provides for the property to be sold to satisfy the debt in cases of default.
An unsecured claim is a liability for which there is no collateral. Instead, credit was extended solely based on the creditor's evaluation of the debtor's ability to pay.