What Is The Difference Between A Secured Creditor And An Unsecured Creditor?

A secured creditor is one whose claim is secured by property. For example, a car, house, furniture or appliances may have been given as security when you bought them and arranged to pay monthly installments.

An unsecured creditor is one whose claim is not secured by any property. An example would be an open account with a store, a credit card account, or medical bills.