Secured debt

(redirected from Secured Liabilities)

Secured debt

Debt that has first claim on specified assets in the event of default.

Secured Debt

A debt on which payment is guaranteed by an asset or lien. This means that a secured debt has collateral; if the debtor does not repay the debt in due course, the creditor has the legal right to take possession of the collateral and resell it to recover losses. In case of bankruptcy, the creditor is considered a secured creditor, which means the creditor receives proceeds from the sale of the collateral to satisfy the debt. If the collateral is insufficient, all secured creditors must have their debts satisfied before any unsecured creditors receive any funds.
References in periodicals archive ?
They listed $496,496 in secured liabilities, $70,027 in unsecured liabilities and $251,950 in assets, according to court documents.
Debts include all liabilities except very short term (less than a month in maturity), covered deposits (including ordinary customers' savings), secured liabilities, wages and debts to tax authorities, utilities companies or other suppliers.
Secured liabilities of the Bank, comprised of Federal Home Loan Bank advances and repurchase agreements, were reduced $4.
Secured liabilities reduce the QSV to determine the net realizable value in more assets; the IRS does not consider unsecured liabilities.
Liabilities not subject to compromise are those secured liabilities incurred before the entity entered reorganization and all liabilities incurred after it entered reorganization.
Shares would be first to be written down, followed by debts, which can include everything except very short-term liabilities (of less than a month), covered deposits, secured liabilities (except where the collateral securing them is worth less than the debt) and tax, wage and supplier obligations.