C. One to whom a debt is owed.
Listen to pronunciationLegal Definition - One to whom a debt is owed; one who gives credit for money or goods. Black's Law Dictionary® Eighth Edition © 2004
Related Terms -
Debtor - One who owes an obligation to another, especially an obligation to pay money.
Secured Creditor - A creditor who has a right to proceed against certain property of the debtor if the debtor defaults. Also called a secured party.
Unsecured Creditor - A creditor who has no rights against specific property of the debtor. Also called general creditor.
Preferred Creditor - A creditor with superior right to payment.
Recent Usage -
"Wireless mesh house Wave Wireless Corporation has filed for Chapter 11 bankruptcy protection, saying it's down to its last $1 million in assets, with debt totaling $5 million that it can't pay. Its largest creditor is Vodafone, which had prepaid Wave for microwave tower-maintenance services, an ancillary operation to Wave's mesh business." Read more...