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baddestbunny
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Simple English definitions for legal terms
known creditor
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A quick definition of known creditor:
A known creditor is someone who is owed money by another person or entity. This could be because they loaned money or provided goods or services. The debtor knows who the creditor is or can easily find out. Known creditors have the right to be notified if the debtor files for bankruptcy or dissolves their business, and they may need to file a claim to get their money back.A more thorough explanation:
A known creditor is a person or entity that is owed a debt by another person or entity. The identity or claim of the creditor is either known or can be reasonably ascertained by the debtor.
For example, if a person owes money to a bank, the bank is a known creditor. If a company owes money to a supplier, the supplier is a known creditor.
Known creditors are entitled to notice of the debtor's bankruptcy or corporate dissolution, as well as notice of any deadline for filing proofs of claim.