As the economy worsens and the value of corporate assets declines, unsecured creditors are finding that very little, if anything, is left for them at the bankruptcy table after the secured creditors have taken as much as they can from a debtor’s assets. Now, after a period of having copious credit available on attractive terms, debtors are going into bankruptcy without sufficient assets to pay even their secured creditors in full. In such circumstances, prospects for unsecured creditors are bleak indeed.
USA, Insolvency & Restructuring, Dykema Gossett PLLC, Bankruptcy, Credit (finance), Debtor, Unsecured debt, Collateral (finance), Economy, Liquidation, Secured creditor, Leverage (finance), Title 11 of the US Code