Browse terms
The bankruptcy process
Creditor
A person or business the debtor owes money to, or that claims the debtor owes it money. 1
Talk to a lawyerHow it works
The Bankruptcy Code's definition turns on having a claim against the debtor that arose at or before the start of the case, which for a case the debtor files is the filing of the petition. A claim is a right to payment. It counts whether or not it has gone to a court judgment, and whether it is disputed or undisputed, secured or unsecured. 1
So a creditor is not only a bank or a card company. Anyone with a right to payment from the debtor fits, including someone whose claim the debtor disputes. 1
A secured creditor has a lien securing some or all of its claim, as a mortgage lender or car lender does. An unsecured claim is one for which the creditor holds no security. 1
A debtor must file a list of creditors with the court. A debt that should have been listed in the schedules but was not is called an unscheduled debt, and depending on the circumstances it might not be discharged. 2 1
Common questions
Do I have to list a debt I disagree with?
How does a creditor ask to be paid in a bankruptcy case?
Usually with a proof of claim, a written statement of why the debtor owes money and how much. There is an official form for it. 1
Can creditors keep collecting after I file?
Filing triggers the automatic stay, which stops most collection activity against the debtor, including lawsuits and garnishments. 1
Sources
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