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Creditor
Practical Law ANZ Glossary w-004-1889 (Approx. 3 pages)
Glossary
Creditor
A person or body corporate who is owed money by an individual or company.
Creditors might be secured or unsecured:
- A secured creditor is a creditor of an individual or a company who has a security (for example, a security interest or a mortgage) over some or all of the individual's or the company's property.
- An unsecured creditor is a creditor who is owed a debt by an individual or a company that is not secured by a security interest over the individual's or the company's property (for example, an employee is considered a special category or class of unsecured creditor).
A creditor may wish to submit a formal statement of what a creditor believes it is owed (known as a proof of debt) to establish its claim against the insolvent company or individual. For more information on proving for a debt, see Practice notes, Proofs of debt and Liquidation.