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Livonia Michigan Bankruptcy

Michigan Bankruptcy Blog

“U” is for Unsecured Creditor in Bankruptcy

Posted by Peter Behrmann, Esq. On June 29th

“U” is for Unsecured Creditor in Bankruptcy

Unsecured creditors are the lowest creditors in priority in Bankruptcy.  Due to this low ranking in priority, often unsecured creditors will receive nothing, or a very small percent of the amount of money you owe them in Bankruptcy.  For example, secured debt (such as a house or car) and priority debt (such as IRS Tax Debt and Child support) have to be paid 100% before your unsecured creditors even begin to receive a dividend in a Chapter 13 Bankruptcy


Examples of Unsecured Debt include but are not limited to:

  • Credit Card Bills
  • Medical Bills
  • Payday Loans
  • Student Loans
  • Mortgage Deficiencies
  • Personal Loans
  • Back Utilities Bills
  • Rent and Lease Deficiencies

The most important thing to remember about your Unsecured Creditors in Bankruptcy is you must list EVERY creditor you have in your Bankruptcy.  You cannot keep a creditor out of Bankruptcy just because you like them and want to keep paying them.  The best advice is to make me aware of every unsecured creditor you have and let me guide you through the Bankruptcy process. 


Peter Behrmann is a Livonia Bankruptcy Attorney.  From my Livonia, Michigan location, I represent clients throughout Metro Detroit and beyond, including Garden City, Wayne, Westland, Redford, Dearborn, Taylor, Ann Arbor, Belleville, Northville, Novi, Farmington, Farmington Hills, Plymouth, Canton, and the Counties of Wayne, Oakland, Livingston, and Washtenaw. My practice is limited to helping consumers like you file Chapter 7 and Chapter 13 Bankruptcy, and Foreclosure Prevention.

Photo Credit: Ayeupmeduck

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