general creditor

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General Creditor

One who is owed an uncollateralized debt. A general creditor has no lien or collateral on the debt except perhaps a claim on unpaid-for goods, depending on the nature of the goods. In the event of bankruptcy in the United States, a general creditor has no automatic right to any part of the debtor's property, and must file a proof of claim in bankruptcy court. In a no-asset Chapter 7 bankruptcy, most debts are discharged to the detriment of the general creditor. In an asset Chapter 7 case, unsecured property is liquidated and distributed to general and other creditors according to the bankruptcy court's ruling. See also: Secured creditor.

general creditor

A lender with an uncollateralized loan, such as the owner of a debenture. In the event that a borrower goes bankrupt, its general creditors are likely to recover a smaller proportion of what is owed them than secured creditors will.
References in periodicals archive ?
The third multi-billion dollar distribution to general creditors is underway as winding down the estate moves ahead," Giddens said.
On the other side, the general creditors or other parties who do business exclusively with LuxuryOne may now have bankruptcy objections or strategic hold-up options that would not otherwise exist.
When it came to Wachovia, they did a deal with Citigroup before Wells Fargo bought it without FDIC assistance--but the FDIC had agreed to do a deal with Citigroup with some FDIC support in the deal, and there the FDIC took care of all general creditors of the bank.
35) Moreover, the statutory language is not literally limited to rabbi trusts, but applies "whether or not such assets are available to satisfy claims of general creditors.
The Eighth Circuit Court of Appeals has determined that a plan, in which an employer purchased whole life insurance policies for employees, was "funded" for ERISA purposes because the insurance policies were not made available to the general creditors of the employer and the insurance policies created a res separate and apart from the general assets of the employer.
If the value of assets exceeds the amount of total deposits, then the bank's general creditors are next in line to receive payments, followed by subordinated debt holders.
Significantly at risk, since participants are generally treated as unsecured general creditors.
This is unlike cherry picking, which involves disavowing unfavorable contracts and forcing the counterparties to become general creditors for the firm.
The plan also calls for Sato Kogyo to repay its liabilities owed to general creditors over the next 10 years.
This means that throughout the entire deferral period, all of your deferred compensation and related investment income remain your employer's property and are subject to the claims of your organization's general creditors.
The FDIC also took the extraordinary step of announcing on May 17, 1984, that all general creditors of the bank would be fully protected against loss.
Unpaid depositors usually had no better rights in the liquidation of a failed bank than did other general creditors, and banks usually were prohibited from giving security for deposits, other than deposits of public funds.

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