A business not authorized to practice law that prepares bankruptcy petitions. A request by a creditor to allow the creditor to take action against the debtor or the debtor’s property that would otherwise be prohibited by the automatic stay. The right to take and hold or sell the property of a debtor as security or payment for a debt or duty. Bankruptcy judges’s approval of a plan of reorganization or liquidation in chapter 11, or payment plan in chapter 12 or 13. This is the British English Definition of Debtor.View American English definition of debtor.
- These checks include an assessment of the debtor’s credit history and financial situation to determine whether the debtor qualifies for the requested loan.
- CreditorA creditor refers to a party involving an individual, institution, or the government that extends credit or lends goods, property, services, or money to another party known as a debtor.
- A debtor is an individual or entity that owes money to a creditor.
- The right to take and hold or sell the property of a debtor as security or payment for a debt or duty.
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For example, under the Bankruptcy Code’s priority scheme, money owed to the case trustee or for prepetition alimony and/or child support must be paid in full before any general unsecured debt (i.e. trade debt or credit card debt) is paid. When debtors need money, creditors are often more than happy to lend it. Creditors, like debtors, can be either a person or a company. Family or friends can even be considered creditors if they’ve lent you money. Typical, or “real” creditors are banks or finance companies.
The https://online-accounting.net/ is a borrower who is liable to pay a defined sum to a creditor. A borrower might be either an individual seeking a personal loan to buy a home or a company looking for credit to expand its product line. The modern debtor definition typically requires a debt to be repaid with interest. Also, if a borrower becomes bankrupt or fails to repay the borrowed money, the lender can resort to a lawsuit, penalty or other legal action. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower, and if the debt is in the form of securities—such as bonds—the debtor is referred to as an issuer.
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Creditors may be suppliers or people who have provided credit to an individual or company. EDITORIAL DISCLOSURE All reviews are prepared by CreditCards.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including card rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the bank’s website for the most current information.
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