A creditor has the right to have a debt satisfied.
Creditor is an adjective that names someone who has the merit to obtain something , or the right to request compliance with an obligation . For example: “The Peruvian writer Mario Vargas Llosa was awarded a new edition of the Nobel Prize in Literature” , “The recipient of the distinction is contestant number four” .
Becoming a creditor of a thing or a title is the same as saying win or receive , although its use is reserved for contexts of a certain formality, especially in written language. In general, the result of a contest is usually expressed using this construction for its dissemination in the press ( "Juan Pérez won the first prize" ), while in everyday speech one of the alternatives mentioned above is usually used. ( "Juan won first prize" ).
The credit balance is the balance that is in the credit of a credit or an account, and it is a positive amount; On the contrary, the amount in red is known as the debit balance, which is not owned but appears in the debit .
Creditor of a debt
The most common use of the concept indicates who has the right to have a debt satisfied . The creditor, in this sense, is a person (whether natural or legal) who is legitimately entitled to demand payment of a previously contracted obligation. This means that, even if one of the parties does not have the means to fulfill its obligation, it does not expire and the creditor can still demand payment. In the case of a bankruptcy , the one who has priority collection rights is known as a preferred creditor .
The creditor has the right to demand full compliance with an obligation within the established period and, in the event that the other party does not comply, may demand compensation for damages .
There are various types of creditors according to the existing guarantees and the nature of the obligation. Although the creditor can demand compliance with an obligation, generally a person's salary cannot be seized in its entirety. Therefore, even when a person declares bankruptcy (which indicates that he or she does not have funds to pay a debt), the creditor cannot garnish his wages to collect, but only a percentage and according to certain specifications.
A credit balance is located in the credit of an account.
a contest
The legal procedure that begins when a natural or legal person (a company ) becomes insolvent and does not have the necessary means to pay the total amount of its debt is known as bankruptcy . It contemplates cases of bankruptcy and suspension of payments, and only public entities are excluded.
The only requirement for a natural or legal person to be declared bankrupt is that the debtor is insolvent and does not have the possibility of regularizing its payment obligations as required by the other parties. Fundamentally, there are two types of bankruptcy proceedings , which are the following:
- Voluntary : one urged by the debtor himself.
- Necessary : the one that creditors claim before the debtor does so.
One of the advantages of voluntary declaration in a situation of bankruptcy is that only in this way does the debtor retain the power to manage and dispose of his or her own assets ; In the case of a necessary competition, said power remains in the hands of the administrators. On the other hand, it is worth mentioning that the contest judge may make various modifications to these conditions , as he deems appropriate.
Although declaring voluntarily is always beneficial for the debtor, this measure does not prevent your habitual residence from being seized, as stated in the current Bankruptcy Law.