There are two kinds of creditors in bankruptcy which are secured creditors (with interest) and unsecured creditors (without interest).
The given statement is true.
Who are creditors?
Creditors are the lending parties who lend the funds to the borrower for repaying it after an agreed period of time.
In the bankruptcy, there are two classifications in respect of the creditors, firstly, the secured creditors which are backed by the assets or property given as collateral security and have a charge on those assets in the form of interest, and secondly, the unsecured creditors which are not secured by any of assets and also don't have any charge in the form of interest.
Therefore, there are secured and unsecured creditors engaged in the bankruptcy proceedings.
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