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Simple English definitions for legal terms
creditor's suit
Read a random definition: Domestic Policy Council
A quick definition of creditor's suit:
Term: Creditor's Suit
Definition: A creditor's suit, also known as a creditor's bill, is a legal action taken by a creditor to reach property that cannot be obtained through the usual process of enforcing a judgment. This type of lawsuit is used when a judgment creditor seeks to collect a debt owed by a debtor who has no other assets that can be seized. Essentially, it is a way for a creditor to try and recover money owed to them by going after property that would otherwise be protected from seizure.
A more thorough explanation:
Definition: A creditor's suit, also known as a creditor's bill, is a legal action taken by a creditor to reach property that cannot be reached through the normal process of enforcing a judgment. This is an equitable suit that allows a judgment creditor to seek relief from the court to collect on a debt owed to them.
- If a creditor has obtained a judgment against a debtor but the debtor has no assets that can be seized to satisfy the judgment, the creditor may file a creditor's suit to try to reach other property that the debtor owns.
- For example, if a debtor owns a piece of property that is held in a trust, the creditor may file a creditor's suit to try to reach that property and satisfy the judgment.
These examples illustrate how a creditor's suit can be used to reach property that would otherwise be protected from seizure by a judgment creditor. By filing a creditor's suit, the creditor is seeking to obtain relief from the court that will allow them to collect on the debt owed to them.