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 ?
Even worse, the general creditors of HotelCo can become obstacles to the restructuring by raising objections to any plan supported by Bank.
Then the FDIC could go ahead and agree that it would protect all general creditors of banks in bank failures.
the claim on the collateral must be "perfected" by registering it in a manner that provides other creditors with an opportunity to learn of the claim; still, courts are likely to disregard the agreement and retain the collateral in the estate of the insolvent firm, thus reducing the improperly collateralized creditor to general creditor status.
Lastly, in a point brought home by the Ninth Circuit in its "whipsaw" analogy in Kupetz, Professors Baird and Jackson warn against any law that gives general creditors too much by insuring them against any less than satisfactory transaction a debtor may enter into.
The paradigm of the disparate but homogenous general creditor is
The advantage of this approach is that additional retirement income provided in this way will be subject to tax only when it is paid and, unlike a Section 457(a) or (f) plan, will be secure from the claims of the organization's general creditors.
After all, the annuity will be owned by the assignee, issued in the assignee's name and fully subject to the claims of the assignee's general creditors.
Non-qualified plans are therefore subject to the claims of general creditors should the corporation become insolvent.
Distribution Would Bring Total Unsecured General Creditor Payout to 35 Percent
In the event of the hospital's bankruptcy, Goldsmith would only be an unsecured, general creditor.
Bankruptcy Court for the Southern District of New York, Honorable Judge Martin Glenn presiding, seeking approval to make a second interim distribution of approximately $461 million on allowed unsecured general creditor claims, which would bring total distributions on those claims to 72 percent.
SIPC President Stephen Harbeck said: "With this new step forward, Trustee Giddens will have achieved distributions to date covering nearly three quarters -- 72 percent -- of allowed unsecured general creditor claims.

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