Skip to content

Creditor Definition Example Essays

Any remainingassetswill be sold and used to pay creditors. Times, Sunday Times (2016)If it is, he would instead be deemed an unsecured creditor. The Sun (2016)The official receiver will take over the legal control of the assets to pay creditors. Times, Sunday Times (2008)Some of the biggest creditors to the fund were willing to strike a deal. Times, Sunday Times (2008)He is under pressure from the international creditors keeping the country afloat. Times, Sunday Times (2016)They must take their chances in the queue along with other unsecured creditors. Times, Sunday Times (2012)It is about stopping the federal government actually paying its creditors. Times, Sunday Times (2011)It could nowpocket a fortune as one of the biggest creditors. The Sun (2012)But in this case the lender must get in line with the unsecured creditors.Charles A. D'Ambrosio & Stewart D. Hodges & Richard Brealey & Stewart Myers Principles of Corporate Finance (1991)Administrators are trying to raisecash to pay creditors. The Sun (2014)He has spent the time since then painstakingly paying off creditors and getting the site up and running. Times, Sunday Times (2016)It is understood that pressure in recentweeks from a number of trade creditors pushed the company over the edge. Times, Sunday Times (2008)The biggest creditors have alreadyyielded. Times, Sunday Times (2009)Greece has only eightworking days to submitrevisedreforms to its international creditors to unlock a finaltranche of bailout funds. Times, Sunday Times (2015)An appointment after the rentbill is due means that landlords would instead have to join the long queue of unsecured creditors. Times, Sunday Times (2012)The exact amount that Detroit owes its creditors is hard to fathom. Times, Sunday Times (2013)In the commercial world, creditors can recover an unpaidloan by selling assets in administration. Times, Sunday Times (2015)It now owes creditors about 7 million. Times, Sunday Times (2013)It is understood that the sum paid is insufficient to cover unsecured creditors owed 70 million. Times, Sunday Times (2009)He is the biggest creditor with 19m of loans. Times, Sunday Times (2012)The section could be relied on only by a future or contingent creditor of a company which had reached the end of the road. Times, Sunday Times (2011)Failure to approve them in a vote this week could block the next tranche of €3 billion from international creditors. Times, Sunday Times (2015)The workers who lost their jobs and the creditors who were owed nearly 1.3 billion by the collapsedeserved no less. Times, Sunday Times (2009)That was especiallytrue in the context of the duties of an auditor which were not owed to the company 's creditors. Times, Sunday Times (2009)As banks and oil company creditors pull the plug on strugglingairlines, the blow will rebound on investors in aircraft leases. Times, Sunday Times (2008)In return, she would pay off his commercial creditors -- but not his gamblingdebts.Paula Byrne PERDITA: The Life of Mary Robinson (2004)

"Creditors" redirects here. For the 1889 play by August Strindberg, see Creditors (play). For the Swedish film, see Creditors (1988 film). For the British film by Ben Cura, see Creditors (2016 film).

A creditor is a party (for example, person, organization, company, or government) that has a claim on the services of a second party. It is a person or institution to whom money is owed.[1] 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 called the creditor, which is the lender of property, service, or money.

Creditors can be broadly divided into two categories: secured and unsecured. A secured creditor has a security or charge, which is some or all of the company’s assets, to secure the debt owed to him. This could be, for example, a mortgage, where the property represents the security. An unsecured creditor does not have a charge over the company’s assets.[2]

The term creditor is frequently used in the financial world, especially in reference to short-term loans, long-term bonds, and mortgage loans. In law, a person who has a money judgment entered in their favor by a court is called a judgment creditor.

The term creditor derives from the notion of credit. Also, in modern America, credit refers to a rating which indicates the likelihood a borrower will pay back his or her loan. In earlier times, credit also referred to reputation or trustworthiness.

Accounting classification[edit]

In accounting presentation, creditors are to be broken down into 'amounts falling due within one year' or 'amounts falling due after more than one year'...

The financial statements presentation is this:

Creditor's power during insolvency[edit]

In the UK, once an IVA has been applied for, and is in place through the courts, creditors are prevented from making direct contact under the terms of the IVA. All ongoing correspondence of an IVA must first go through the Insolvency Practitioner. The Insolvency Practitioner will contact you. The creditors will begin to deal with the Insolvency Practitioner and readily accept annual reports when submitted.

See also[edit]

References[edit]

External links[edit]