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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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38% - Moderately

Unsecured Claim


Synonyms:not covered, unguaranteed
Filed Under: financial-banking
Tags: banking
 

Definition of unsecured claim

unsecured claim
1. A claim or debt for which a creditor holds no special assurance of payment, unlike a mortgage or lien; a debt for which credit was extended based solely upon the creditor's assessment of the debtor's future ability to pay.

Related Terms and Acronyms:

  • claim   A creditor's assertion of a right to payment from a debtor or the debtor's property.
  • credit limit   The maximum amount of charges a cardholder may apply.
  • credit score   Also referred to as a 'Beacon Score' is a number, between 300 and 900, that reflects a person's credit history. Lenders calculate this number using a computer system as part of the process for assigning rates and terms to the loans they grant.
  • debt   Money one person or firm owes to another person or firm.
  • forbearance   Delaying foreclosure, usually because the borrower has arranged to pay the amount in arrears.
  • foreclosure   The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
  • instalment   The regular periodic payment that a borrower agrees to make the lender.
  • lien   A legal hold or claim of a creditor on the property of another.

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