Unsecured debt

In the case of a company or bank going into liquidation there are several levels of debt guarantee: secured, preferential and unsecured. The unsecured debts are last in line to be paid after the others have been paid in full, or as fully as possible. Depending on the assets remaining the unsecured creditors may receive a small percentage of what they are owed or even nothing at all; this justifies a higher interest Interest An amount paid in remuneration of an investment or received by a lender. Interest is calculated on the amount of the capital invested or borrowed, the duration of the operation and the rate that has been set. -rate when the companies borrow from unsecured and/or non-preferential creditors.

CADTM

COMMITTEE FOR THE ABOLITION OF ILLEGITIMATE DEBT

35 rue Fabry
4000 - Liège- Belgique

00324 226 62 85
info@cadtm.org

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