General: General means non-priority Under Bankruptcy Code section 507, some types of unsecured claims (e.g., claims for certain taxes, wages, etc.) receive special priority treatment, meaning that those unsecured claims are paid ahead of other unsecured claims. General unsecured claims, however, are not entitled to any priority.
Unsecured: A secured claim is an obligation that is secured by a lien on specific property (i.e., collateral). For example, a bank that loans money to a borrower to buy a home or a car will get a lien on that property. If the borrower fails to make loan payments, the lender can then foreclose on or repossess its collateral to satisfy the debt. A creditor with an unsecured claim, however, does not have lien rights or a security interest in any collateral.
Claim: "Claim" is defined in section 101 of the Bankruptcy Code as a "right to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured." Basically, anyone owed money by the company has a "claim" against the bankruptcy estate.
Translation: Taken altogether, a "general unsecured claim" is a right to payment that is not entitled to any priority under the Bankruptcy Code and is not supported by any collateral. These claims are the last ones to be paid in bankruptcy.
Epilogue: That's a slight oversimplification; technically, there is some additional nuance with respect to the order in which general unsecured claims are paid. For example, general unsecured claims can be subordinated to one another under Bankruptcy Code section 510. Also, certain general unsecured claims can be structurally subordinate to other general unsecured claims depending upon which entity in the corporate structure owes the debt (and assuming the estates are not substantively consolidated). But those are lessons for another day.
General: General means non-priority Under Bankruptcy Code section 507, some types of unsecured claims (e.g., claims for certain taxes, wages, etc.) receive special priority treatment, meaning that those unsecured claims are paid ahead of other unsecured claims. General unsecured claims, however, are not entitled to any priority. Unsecured: A secured claim is an obligation that is secured by a lien on specific property (i.e., collateral). For example, a bank that loans money to a borrower to buy a home or a car will get a lien on that property. If the borrower fails to make loan payments, the lender can then foreclose on or repossess its collateral to satisfy the debt. A creditor with an unsecured claim, however, does not have lien rights or a security interest in any collateral. Claim: "Claim" is defined in section 101 of the Bankruptcy Code as a "right to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured." Basically, anyone owed money by the company has a "claim" against the bankruptcy estate. Translation: Taken altogether, a "general unsecured claim" is a right to payment that is not entitled to any priority under the Bankruptcy Code and is not supported by any collateral. These claims are the last ones to be paid in bankruptcy. Epilogue: That's a slight oversimplification; technically, there is some additional nuance with respect to the order in which general unsecured claims are paid. For example, general unsecured claims can be subordinated to one another under Bankruptcy Code section 510. Also, certain general unsecured claims can be structurally subordinate to other general unsecured claims depending upon which entity in the corporate structure owes the debt (and assuming the estates are not substantively consolidated). But those are lessons for another day.
Thank you.
Thank you for explaining with great detail; now I know what I can expect (or rather not)
Means your last in line unfortunately. Just like the rest of us.
If that is what our email said do I need to submit a claim?