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Secured Creditor

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Secured Creditor
One who is owed a collateralized debt. A secured creditor has a lien or collateral on the debt, depending on the nature of the goods. In the event of bankruptcy in the United States, a general creditor has a right to repossess the property if the debt is not paid, especially in case of bankruptcy. In Chapter 7 bankruptcy, secured creditors are usually allowed to repossess the property even if the debt is discharged. The creditor may waive this right if the debtor reaffirms the debt, that is, signs a statement indicating that the debt still exists. See also: General creditor.

secured creditor
A creditor having a claim that is protected by specific assets. For example, the owner of a mortgage bond can force the sale of or can take possession of a particular asset if the borrower fails to meet the terms of the lending agreement. Compare unsecured creditor.


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Accountants Baker Tilly were called in after a secured creditor of petitioned for the stricken firm to be put into administration three months ago.
The plan calls for giving secured creditors 100 percent ownership in a new, private company, that will be run by the current management team.
In addition, under the amended version, unsecured creditors, secured creditors and the administrator are all able to receive the legal protection process plan at about the same time, which is thought to avoid unnecessary time lags.
 
 
 
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