As you have probably gathered, all other types of debt are unsecured. The Bankruptcy & Insolvency Act complicates unsecured debt as it has allocated certain priorities to certain unsecured debt – employees when a company goes bankrupt. The Act stipulates that certain unsecured debt gets paid from available funds ahead of other unsecured debt. The concept of preferred unsecured debt is beyond the scope of our current topic. If you need more information on this type of debt, please contact our office.