# Undersecured Creditor

**IRI:** https://folio.openlegalstandard.org/RDJ5gLF3diEDjeGSux0X4TJ

## Labels

**Alternative Labels:**

- Inadequately Secured Creditor
- Insufficiently Secured Lender
- Partially Secured Creditor

## Definition

An Undersecured Creditor is a lender whose collateral value securing a loan is less than the outstanding debt owed by the borrower. This situation often arises in bankruptcy contexts, affecting the creditor’s ability to fully recover the loan amount through collateral liquidation.

## Sub Class Of

- https://folio.openlegalstandard.org/R7PHFZzZmVmczzNQl6iZKsa

**Deprecated:** False