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Creditor
Practical Law Canada Glossary 9-570-3910 (Approx. 2 pages)
Glossary
Creditor
A creditor is a person who is owed money or has a financial claim against a debtor. Generally, there are four types of creditors, ranking in order of priority as follows:
- Trust creditor: one for whom the debtor holds the property in trust for by virtue of special status under legislation.
- Secured creditor: one who takes a security interest in collateral for the extension of credit.
- Preferred creditor: unsecured creditor who is given a priority in bankruptcy.
- Unsecured creditor: one who gives credit but who does not have any security interest for the debt owed to them and is not recognized as a preferred creditor under the Bankruptcy and Insolvency Act.