Secured Creditor Defined A creditor whose claim is secured by a lien in the debtor's property by reason of  the debtor's agreement (such as a mortgage)  or an involuntary lien (such as a judgment or tax lien). The creditor's claim is only secured up to the value of the value of the collateral.  If a lender borrows $200,000.00 to the debtor to purchase a home on the condition that the loan is secured by the home, the debtor will give to the lender a mortgage that will be filed on the property.  If the properties value falls to $100.000.00, the debt owed over that amount is unsecured.

Unsecured Creditor Defined A loan that is not secured by a lien against the debtor's property is called an "unsecured loan or debt".  If a lender lends $20,000.00 to the debtor to help purchase a house but does not require that the debtor secure the loan against the home or any other debtor property, the loan is unsecured.  The creditor is such a situation would be referred to as an Unsecured Creditor.