Ashton borrows $25,000 from Amanda,who lends the money without taking an interest in collateral for the loan.Amanda is relying on Ashton's credit standing when she made the loan.In this case,what kind of creditor is Amanda?

Question

Quizplus · Accepted Answer

Amanda is an unsecured creditor because she lent money without taking any collateral for the loan and is relying solely on Ashton's credit standing. A secured creditor would have taken collateral, such as property or assets, to secure the loan. Administrative claim creditors and post-petition creditors are not relevant in this scenario.

Ashton Borrows $25,000 from Amanda,who Lends the Money Without Taking