unsecured creditorunsecured creditor: a creditor, ie. someone who has lent or ...: a creditor, ie. someone who has lent or is otherwise owed money, that has no collateral security for the money that is owed; as regards recovery of monies owed, an unsecured creditorunsecured creditor: a creditor, ie. someone who has lent or ... is in an inherently riskier position than a secured creditor who has taken security for a debt by way of (for example) a legal charge over the debtor’s property.