A known creditor is an individual or entity that is owed money by another party, often due to a loan or the provision of goods or services. The debtor is aware of the creditor’s identity or can easily determine it. Known creditors have the right to receive notification if the debtor declares bankruptcy or dissolves their business, and they may need to submit a claim in order to recover the money owed to them.
Known creditors are individuals or entities that are owed a debt by another individual or entity. The debtor is aware of the identity or claim of these creditors, or can reasonably determine it. For instance, if an individual owes money to a bank, the bank is considered a known creditor. Similarly, if a company owes money to a supplier, the supplier is a known creditor. These creditors have the right to receive notification regarding the debtor’s bankruptcy or corporate dissolution, as well as any deadlines for submitting proofs of claim.
A known creditor is a person or entity to whom a debtor owes a specific debt that is known and quantifiable.
A known creditor is someone to whom the debtor owes a specific and quantifiable debt, while an unknown creditor is someone to whom the debtor owes a debt that is not yet known or quantifiable.
Yes, a known creditor can take legal action against a debtor to recover the debt owed to them.
A known creditor has the right to file a proof of claim in a bankruptcy case in order to receive a portion of the debtor’s assets.
In some cases, a known creditor may be able to force a debtor into bankruptcy by filing an involuntary bankruptcy petition.
If a debtor does not pay a debt to a known creditor, the creditor may pursue legal action to collect the debt, which could result in wage garnishment, asset seizure, or other consequences.
Yes, a known creditor may be able to obtain a court order to garnish a debtor’s wages in order to collect a debt.
In some cases, a known creditor may be able to obtain a court order to seize a debtor’s property in order to satisfy a debt.
The statute of limitations for a known creditor to collect a debt varies by state and type of debt, but generally ranges from 3 to 10 years.
Yes, a known creditor may sell a debt to a collection agency, which then has the right to pursue collection of the debt.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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