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Bankruptcy - What is a Creditor?A creditor is the person, entity, organization or other party that has loaned an individual or another party, money, property or services. In the case of a bankruptcy, this might be a bank or a credit union that you borrowed money for your home, car or other items or services. Example: If an individual borrows money from Bank “A” to purchase an automobile, Bank “A” becomes the Creditor and the individual who borrowed the money becomes the Debtor. When a debtor (also known as a borrower) borrows money from a creditor (such as a bank), there is typically a contract that is signed promising to return the money. The description above is not a comprehensive legal definition of the term "Creditor", it should be considered an informal description of the term. The description above is not a comprehensive legal definition but rather an informal description of the term and how it may be used in a case involving bankruptcy. |
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