Examples of creditors in the following topics:
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- Most creditors are willing to negotiate a settlement to receive a portion of their money and not risk losing everything in a bankruptcy.
- In general, creditors understand that bankruptcy is an option for debtors with excessive debt.
- The main cost associated with debt restructuring is the time and effort required to negotiate with creditors.
- A debtor and creditor could also agree to a debt-for-equity swap, wherein a company's creditors generally agree to cancel some or all of the debt in exchange for equity in the company.
- By consolidating debts, the debtor replaces payments to many different creditors with a payment to one creditor.
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- Bankruptcy allows debtors to either reorganize and restructure debts or liquidate assets to be used to pay off creditors.
- The bankruptcy system generally endeavors to reward creditors who continue to extend financing to debtors and discourage creditors from accelerating their debt collection efforts.
- In involuntary bankruptcy cases, creditors file the petition.
- A secured creditor may be allowed to take the applicable collateral if the creditor first obtains permission from the court.
- Interested creditors then vote for a plan.
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- Under the laws of many countries (including the United States and Canada), bondholders are in line to receive the proceeds of the sale of the assets of a liquidated company ahead of some other creditors.
- Bank lenders, deposit holders (in the case of a deposit-taking institution such as a bank) and trade creditors may take precedence.
- When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11 of the Bankruptcy code.
- In Chapter 7, the business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors.
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- Repossession is a legal process in which property, such as a car, is taken back by the creditor.
- By extending the loan through secured debt, the creditor is relieved of most of the financial risks involved because it allows the creditor to take the property in the event that the debt is not properly repaid.
- The creditor may offer a loan with attractive interest rates and repayment periods for the secured debt.
- In the event of the bankruptcy of the borrower, the unsecured creditors will have a general claim on the assets of the borrower after the specific pledged assets have been assigned to the secured creditors, although the unsecured creditors will usually realize a smaller proportion of their claims than the secured creditors.
- In some legal systems, unsecured creditors who are also indebted to the insolvent debtor are able (and in some jurisdictions, required) to set-off the debts, which actually puts the unsecured creditor with a matured liability to the debtor in a pre-preferential position.
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- Property which is held by the company on trust for third parties will not form part of the company's assets available to pay creditors.
- Before the claims are met, secured creditors are entitled to enforce their claims against the assets of the company to the extent that they are subject to a valid security interest.
- Security by way of floating charge may be postponed to the preferential creditors.
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- Unexpectedly high inflation tends to transfer wealth from creditors to debtors and from the rich to the poor.
- If the inflation rate unexpectedly jumps to 8% after the loan is made, however, then the creditor is essentially transferring purchasing power to the borrower.
- Since it benefits debtors and hurts creditors, in practice unexpected inflation is often a transfer of wealth from the rich to the poor .
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- At first, all the secured creditors are paid against proceeds from assets.
- Afterward, a series of creditors, ranked in priority sequence, have the next claim/right on the residual proceeds.
- Ownership equity is the last or residual claim against assets, settled only after all other creditors are paid.
- In such cases where even creditors could not get enough money to pay their bills, nothing is left over to reimburse owners' equity; which is thus reduced to zero.
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- Bankruptcy occurs when an entity cannot repay the debts owed to creditors and must take action to regain solvency or liquidate.
- Bankruptcy is a legal status of an insolvent person or an organization, that is, one who cannot repay the debts they owe to creditors .
- If potential creditors sense that bankruptcy could be likely firms will have a harder time acquiring financing and even if they do, it will probably come at a high interest rate that significantly increases the cost of debt.
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- ., a car or property) as collateral for the loan, which in turn becomes a secured debt owed to the creditor of the loan.
- The debt is thus secured against the collateral, and in the event that the borrower defaults, the creditor takes possession of the collateral asset and may sell it in order to recover some or all of the amount loaned.
- In the case of unsecured debt, the absence of collateral means that the creditor may only satisfy the debt against the borrower.
- In the event of bankruptcy or liquidation, senior debt must be repaid before any other creditors receive payment.
- Subordinated debt has a lower priority than the issuer's other bonds and ranks below the liquidator, government tax authorities, and senior debt holders in the hierarchy of creditors.
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- A debt is an obligation owed by one party (the debtor) to a second party (the creditor).
- A debt is an obligation owed by one party (the debtor) to a second party (the creditor).
- A debt is created when a creditor agrees to lend a sum of assets to a debtor.
- A debt obligation is considered secured if creditors have recourse to the assets of the company on a proprietary basis or otherwise ahead of general claims against the company.
- Unsecured debt comprises financial obligations, where creditors do not have recourse to the assets of the borrower to satisfy their claims.