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Unsecured Creditors, like credit card issuers, suppliers, and some cash advance companies (although this is changing), do not hold a lien on its debtor's property to assure payment of the debt if there is a default. The secured creditor holds priority on debt collection from the property on which it holds a lien.
A creditor can ask the court to attach the debtor's bank account or real estate to satisfy judgment on an unsecured debt. This can be done with or without notice to the debtor. Collecting Secured and Unsecured Debts as a Creditor sederlaw.com ? collecting-secured-and-unsecured-... sederlaw.com ? collecting-secured-and-unsecured-...
Some of the most common types of unsecured creditors include credit card companies, utilities, landlords, hospitals and doctor's offices, and lenders that issue personal or student loans (though education loans carry a special exception that prevents them from being discharged). Unsecured Creditor Defined, Types, vs. Secured Creditor - Investopedia investopedia.com ? terms ? unsecuredcreditor investopedia.com ? terms ? unsecuredcreditor