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Creditor

debtor property individual money

An individual to whom an obligation is owed because he or she has given something of value in exchange. One who may legally demand and receive money, either through the fulfillment of a contract or due to injury sustained as a result of another's NEGLIGENCE or intentionally wrongful act. The term creditor is also used to describe an individual who is engaged in the business of lending money or selling items for which immediate payment is not demanded but an obligation of repayment exists as of a future date.

An attachment creditor is an individual who has obtained an order of attachment from a court to command a sheriff to seize the property of a debtor who has defaulted in the repayment of an outstanding obligation so that the property may be used to satisfy the creditor's claim.

A JUDGMENT CREDITOR is a party who has gone to court and obtained a judgment against the person who owes him or her money. If that judgment creditor obtains an order of attachment, he or she becomes an attachment creditor.

A general creditor or creditor at large is an individual who has neither a lien nor a security interest in the property of the debtor.

A junior creditor is one whose right to collect money from a debtor is subordinate to that of another individual who also has a right to collect payment of a different debt from the same debtor. The person with the primary right to payment is known as a senior creditor.

A principal creditor is the party who has a claim against the debtor that is far greater than the debt owed to any other creditor, and in some instances, to all other creditors combined.

A secured creditor holds a special legal right in particular property of the debtor to assure him or her of repayment of the debt. A creditor who has the protection of a lien or mortgage is secured.

A single creditor has a lien on only one of the debtor's funds or accounts.

Petitioning creditors are those parties to whom one debtor owes money and who apply to the court of BANKRUPTCY in order to secure the debtor's property and distribute it equitably among them.

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