offsetting claim

See: setoff
References in periodicals archive ?
In bankruptcy cases, a creditor is granted setoff rights because it would be clearly unfair to force the creditor to pay the full amount of its indebtedness to a financially distressed debtor when the creditor faces the real risk of the debtors delayed payment of only a fraction of, or nonpayment of, the creditor's offsetting claim.
It would be unfair to force a trade creditor to pay the full amount of its indebtedness to an insolvent debtor while receiving payment of only a fraction of its offsetting claim against the debtor.
It would be unfair to force a trade creditor to pay the full amount of its indebtedness to a debtor while receiving only a fraction of its offsetting claim against the debtor.