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LSDefine
Simple English definitions for legal terms
specialty creditor
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A quick definition of specialty creditor:
A specialty creditor is someone who is owed money by another person, called a debtor. This type of creditor has a special right to collect the debt from the debtor's inherited land. In the past, this right was only available if the creditor had a legal document called a judgment before the debtor died. Nowadays, this type of creditor is not very common.A more thorough explanation:
A specialty creditor is a type of creditor who has a claim against a debtor's property to the extent of the land inherited. This type of creditor is historically limited to the lawful heir of the debtor and can only make a claim if the debtor did not devise the land to a stranger.
For example, if a person owes a debt to a specialty creditor and dies, the creditor can only make a claim against the land inherited by the lawful heir. If the debtor devised the land to a stranger, the creditor's claim is defeated.
Overall, a specialty creditor is a specific type of creditor with a limited right of action against a debtor's property.