unsecuredun·se·cured /ˌʌnsɪˈkjʊəd◂-ˈkjʊrd◂/ adjectiveadjFINANCE1an unsecured loan, debt etc is not protected by an agreement that if it is not paid the company borrowing the money has to give the lender certain assets, such as property or sharesLenders typically collect less than 10 cents on the dollar on unsecured loans in personal bankruptcy proceedings.
2unsecured lender/creditor someone who lends money, without an agreement that if the debt is not paid, the company borrowing or owing the money has to give the lender certain assets, such as property or sharesUnder the terms of the reorganization, unsecured creditors will also receive newly issued common stock in the company.