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Law vocabulary · Rights & Obligations

Creditor

Meaning in law, with examples

/ˈkredɪtə/nounCommon term

In law, creditor means: A person or organisation that is owed money or another performance by someone else, such as a bank that has lent money.

In Turkish: alacaklı

How it is used

Common in contract, insolvency and enforcement law. Lawyers distinguish 'secured creditors', who hold security such as a mortgage, from 'unsecured creditors'. In insolvency, creditors 'submit claims' and may be paid only part of what they are owed.

Example sentences

  1. The company's main creditor is the bank that financed the new factory.

  2. Unsecured creditors are likely to receive only a small part of what they are owed.

Common collocations

  • secured creditor
  • unsecured creditor
  • creditors' meeting
  • pay creditors
  • judgment creditor
  • debtorA person or organisation that owes money or another performance to someone else.
  • obligationSomething that a person or organisation must do because a law, a contract or a court order requires it.
  • enforceTo make sure that a law, rule, contract or court decision is obeyed, if necessary by using official powers such as seizing property.
  • liabilityLegal responsibility for something, especially the duty to pay for harm, loss or debts; in accounting, also an amount that a company owes.
  • contractAn agreement between two or more parties that the law will enforce, setting out what each side must do or give.

More terms: Rights & Obligations

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This page explains English vocabulary for learners. It is not legal advice.