Debtors and Creditors

Question 1

General Creditor

unsecured

Answer 1

Has claim only against total assets of debtor

CANNOT force debtor to pay until lien on debtor’s property obtained

Question 2

Lien Creditor

secured

Answer 2

Has interest in a specific piece of debtor’s property

Specific property = collateral

Interest = lien

Question 3

Types of Lien Creditors

Answer 3

(1) Statutory Lien Creditor - obtains lien by operation of statute
(2) Judicial Lien Creditor - obtains lien by judicial process
(3) Consensual Lien Creditor - obtains lien from debtor pursuant to an agreement with debtor