Creditor

An entity (person or institution) that extends credit by giving another entity permission to borrow money if it is paid back at a later date. Creditors can be classified as either "personal" or "real". Those people who loan money to friends or family are personal creditors. Real creditors (i.e. a bank or finance company) have legal contracts with the borrower granting the lender the right to claim any of the debtor's real assets (e.g. real estate or car) if he or she fails to pay back the loan.

When creditors are notified of bankruptcy proceedings, they have a couple of options with respect to their claim against the debtor:

1. They can share in any distribution from the bankruptcy estate according to the priority of their claim. Most unsecured, non-wage claims come low on the priority list.

2. They can take the debtor to court and challenge a debtor's discharge (the right not to pay back) due to bankruptcy protection.


Investment dictionary. . 2012.

Look at other dictionaries:

  • creditor — cred·i·tor / kre də tər, ˌtȯr/ n: a person to whom a debt is owed; esp: a person to whom money or goods are due compare debtor, obligor general creditor: a creditor who is not secured by a lien or other security interest – called also unsecured… …   Law dictionary

  • creditor — CREDITÓR, OÁRE, creditori, oare, adj., s.m. şi f. 1. adj. (Despre persoane fizice sau juridice) Care a creditat; (despre sume) care se înscrie în creditul unui cont. 2. s.m. şi f. Titular al unui drept de creanţă; persoană sau instituţie care a… …   Dicționar Român

  • creditor — a person to whom or business to which the debtor owes money or that claims to be owed money by the debtor (Glossary of Common Bankruptcy Terms) That person who has a claim, preferred, secured or unsecured, provable under the Bankruptcy and… …   Glossary of Bankruptcy

  • creditor — mid 15c., from Anglo Fr. creditour, O.Fr. creditour (early 14c.), from L. creditor truster, lender, from creditus, pp. of credere (see CREDO (Cf. credo)) …   Etymology dictionary

  • creditor — [kred′it ər] n. [ME creditour < L creditor: see CREDIT] a person who extends credit or to whom money is owed …   English World dictionary

  • Creditor — Cred it*or (kr?d ?t ?r), n. [L.: cf. F. cr?diteur. See {Credit}.] 1. One who credits, believes, or trusts. [1913 Webster] The easy creditors of novelties. Daniel. [1913 Webster] 2. One who gives credit in business matters; hence, one to whom… …   The Collaborative International Dictionary of English

  • Credĭtor — (lat.), Gläubiger, s.d. und Concurs …   Pierer's Universal-Lexikon

  • Credĭtor — (lat.), der Gläubiger …   Meyers Großes Konversations-Lexikon

  • Creditor — Creditor, der Gläubiger …   Herders Conversations-Lexikon

  • CREDITOR — in debitorem quid iuris habuerit, apud Romanos, indigitat ista decemvirorum lex: ERIS. CONFESSI. DEBITI. Q. IURE. IUDICATIS. TRIGINTA. DIES. IUSTEI. SUNTO. POST. DEINDE. MANUS. INIECTIO. ESTO. IN. IUS. DUCITO. NI. IUDICATUM. FACIT. AUT. QUIS.… …   Hofmann J. Lexicon universale

  • creditor — ► NOUN ▪ a person or company to whom money is owing …   English terms dictionary

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