What is creditor?

  • (noun): A person to whom money is owed by a debtor; someone to whom an obligation exists.

Creditor

A creditor is a party (e.g. person, organization, company, or government) that has a claim to the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property or service to the second party under the assumption (usually enforced by contract) that the second party will return an equivalent property and service. The second party is frequently called a debtor or borrower. The first party is the creditor, which is the lender of property, service or money.

Read more about Creditor.

Some articles on creditor:

Creditors Power During Insolvency
... applied for and is in place through the courts, creditors are prevented from making direct contact under the terms of the IVA ... The creditors will begin to deal with the Insolvency Practitioner and readily accept annual reports when submitted ...
Subordination (finance) - United States Law - Subordination of Debt
... Subordination is the process by which a creditor is placed in a lower priority for the collection of its debt from its debtor's assets than the priority the creditor ... important when a debtor owes more than one creditor but has assets of insufficient value to pay them all in full at the time of a default ... Except in bankruptcy proceedings, the creditor with the first priority for collection will have the first claim on the debtor's assets for its debt and the creditors whose rights are subordinate will thus ...
Attachment (law)
... is a legal process by which a court of law, at the request of a creditor, designates specific property owned by the debtor to be transferred to the creditor, or sold for the benefit of the creditor ... For example, a declaration of bankruptcy will severely limit the ability of creditors to attach the property of the debtor ... exemption or other property exemptions which limit the ability of creditors to attach the debtor's primary residence, vehicle, and/or personal effects. ...
Creditor Reference - Structure
... The Creditor Reference is an alphanumeric string, 25 characters long, with the letters "RF" at the beginning ... The remaining part of the Creditor Reference (up to 21 alphanumeric characters) is the Reference ... The content of the Creditor Reference can be determined without any restrictions ...
Creditor Reference - Implementation
... A vendor adds the Creditor Reference to its invoices ... When a customer pays the invoice, the company writes the Creditor Reference instead of the invoice number in the message section, or places a ...

Famous quotes containing the word creditor:

    A creditor is worse than a slave-owner; for the master owns only your person, but a creditor owns your dignity, and can command it.
    Victor Hugo (1802–1885)

    Here were poor streets where faded gentility essayed with scanty space and shipwrecked means to make its last feeble stand, but tax-gatherer and creditor came there as elsewhere, and the poverty that yet faintly struggled was hardly less squalid and manifest than that which had long ago submitted and given up the game.
    Charles Dickens (1812–1870)

    A certain creditor had two debtors; one owed five hundred denarii, and the other fifty. When they could not pay, he canceled the debts for both of them. Now which of them will love him more?
    Bible: New Testament, Luke 7:41,42.