Unsecured Claim Law and Legal Definition
Unsecured claim means a claim or debt for which a creditor has got no security or assurance of payment. In an unsecured claim the creditor extends the claim to the debtor after looking into the debtor’s ability to repay the debt. For an unsecured claim there is no collateral security.
This could also refer to a claim by a creditor to the extent that its lien on or right of setoff against the debtor's property is worth less than the amount of the debt.
