Debt Solutions
Secured Creditors

A secured creditor can prove for all or part of its secured debt.

Where a creditor surrenders its security to the trustee, a claim may be made for the whole of the debt.

Where a creditor sells its security, a claim may be made for the shortfall or conversely the surplus must be given to the trustee.

If the value of the asset is less than the amount owing, the shortfall must be included in the debt agreement proposal, as a unsecured debt.