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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.
n. a person or entity to whom a debt is owed.
CREDITOR, persons, contracts. A creditor is he who has a right to require
the fulfilment of an obligation. or contract.
2. Creditors may; be divided into personal and real.
3. The former are so called, because their claims are mainly against the person, who can reach the property of their debtors only by; virtue of the general rule by which he who has become personally obligated, is bound to fulfill his engagements, with all his property acquired and to be acquired, Which is a common guaranty for all his creditors.
4. The latter are called real, because they have mortgages or other securities binding on the real estates of their debtors.
5. It is proper to state that personal creditors may be divided into two classes first, those who have a right on all the property of their debtors, without considering the origin, or the nature of their claims; secondly, those who, in consequence of some provision of law, are entitled to some special prerogative, either in the manner of recovery, or in the rank they are to hold among creditors; these are entitled to preference. As an example, may be mentioned the case of the United State; when they are creditors, they have always a preference in case of insolvent estates.
6. A creditor sometimes becomes so, unknown to his debtor, as is the case when the former receives an assignment of commercial; paper, the title to recover which may be conveyed either by endorsement, or, in some cases, by mere delivery. But in general it is essential there should be a privity of contract between the parties. Vide, generally, 7 Vin. Ab. 42; 3 Com. Dig. 343; 8 Com. Dig. 388; 1 Supp. to Ves. Jr. 302 2 Sup. to Ves. Jr. 305 Code, 7, 72, 6; Id. 8, 18; Dig 42, 6, 17; Nov. 97 ch. t3 Bouv. Inst. Index, h.t.