A secured creditor has a security interest, or a legally enforceable claim, on particular asset or assets of a debtor. In the event of a bankruptcy filing by a debtor, a secured creditor would be entitled to a liquidation value equal to or greater than the loan amount. For example, in the event of a foreclosure sale, a secured creditor would receive the proceeds of the foreclosure sale. Secured creditors have the advantage of having priority when it comes to funds used in a bankruptcy case to pay off debts. Secured creditors will be paid first in a bankruptcy case, and only after all secured creditors have been paid will unsecured creditors be paid. Because of this, a secured creditor carries less risk than an unsecured creditor.