Definition - What does Creditor mean?

Any person or business that loans money or finances an asset is considered a creditor. There are different types of creditors; some require collateral to finance a larger amount. This is referred to as a secured creditor. If there is no collateral involved, then the loan is from an unsecured creditor. In terms of bankruptcy, certain creditors will take precedence over others.

Justipedia explains Creditor

Creditors must file a proof of claim (form B10) in a bankruptcy. The debtor must also list all creditors for them to be considered as part of the bankruptcy. If a debtor forgets to list any of their creditors, then those creditors may be able to sue the debtor for the remainder of the outstanding debt. They may be entitled to collect unlike creditors listed in the bankruptcy. Creditors listed in a bankruptcy with assets are paid by the Trustee. The Trustee decides how much is available to be paid to each creditor.

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