Concept in Definition ABC

A creditor is a person who has the powers to demand payment or fulfillment of a obligation contractual between two parties.

For the economy, finances and legal regimes, the creditor can be a natural or legal person who has powers to demand the payment of a debt or the satisfaction of a contract or legal agreement from one of the participants in the same. The creditor is a legal figure with a negative connotation, since it is his duty to enforce the obligations, even if they exceed the possibilities of the parties. A typical example is the contraction of a money debt by an individual that the creditor in charge will be in charge of making settle, by case, with the assets of the debtor party. Another very common case is on the occasion of a bankruptcy filing by a company. Given these circumstances, creditors must enforce the payment of their debts and indemnities to the institution, either for example by mortgaging their properties.

Those institutions are also considered creditors,

organisms, States or banks at the international level that grant money as a loan or credit to individuals, institutions or States, later requiring its payment with complementary sums of interest. The best known are the International Monetary Fund, the world Bank, the Bank Inter-American Development or the Paris Club.

The figure of the creditor is usually legal, but sometimes they operate clandestinely or outside the law, seeking that defaulters or debtors settle their debts of money in more or less legal ways, often using methods of threat or violence. These cases are the least frequent and unrelated to the financial sphere of payments and defaults.

A creditor exists at a social and legal level for the purpose of maintaining the regular operation of contracts and monetary transactions, ensuring that the harmony of relationships is maintained and that the investor does not lose their money or capital.

Issues in Creditor