30 May 2009
Someone to whom money is owed. A secured creditor is someone holding a security over an asset of the person or company owing him or her money and usually can realise (sell) the asset to recover the debt without having to bankrupt the debtor or (in the case of a company) put it into liquidation.
There are two kinds of creditors: secured and unsecured.
1. A secured creditor is one who has the right to get his collateral back if he is not receiving payment for it. 2. An unsecured creditor is one who has no right to the return of any property, no matter how much is owed.
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