creditor
A creditor is a person, bank, or organization to whom money is owed because they have provided goods, services, or loans on credit. In legal and financial contexts, it refers to the party that has a claim on the services or property of a second party, known as the debtor.
Examples
3 of 5He received a stern letter from his primary creditor regarding the missed mortgage payments.
He received a serious letter from the person he owes money to about the unpaid house loans.
The court-appointed liquidator is responsible for distributing the remaining assets to each verified creditor.
The official in charge must give the remaining property to everyone the company owes money to.
I've got a few creditors calling me every day, so I really need to get my finances in order.
I have several people I owe money to calling me constantly, so I need to fix my budget.
Word Family
Memory Tip
The word comes from the Latin 'credere' (to believe). A creditor is someone who 'believes' or trusts that you will pay them back.
Quick Quiz
When the retail chain went bankrupt, every ______ had to file a formal claim to recover their funds.
Correct!
The correct answer is: creditor
Examples
He received a stern letter from his primary creditor regarding the missed mortgage payments.
everydayHe received a serious letter from the person he owes money to about the unpaid house loans.
The court-appointed liquidator is responsible for distributing the remaining assets to each verified creditor.
formalThe official in charge must give the remaining property to everyone the company owes money to.
I've got a few creditors calling me every day, so I really need to get my finances in order.
informolI have several people I owe money to calling me constantly, so I need to fix my budget.
Theoretical models of sovereign default examine the power dynamics between the national government and its international creditors.
academicScientific models of country debt study the relationship between a government and the foreign entities that lent it money.
Our main creditor has agreed to restructure the debt to avoid a complete company shutdown.
businessThe main bank we owe money to has agreed to change the payment plan so the business can stay open.
Word Family
Common Collocations
Common Phrases
judgment creditor
a person who has obtained a court order for the payment of money
creditor protection
legal measures that prevent lenders from seizing assets while a debtor reorganizes
trade creditor
a supplier to whom a business owes money for goods or services delivered
Often Confused With
A creditor is the one who gives money and is owed; a debtor is the one who receives money and owes it.
Usage Notes
The word 'creditor' is most commonly used in technical, legal, and business contexts. In casual conversation, 'lender' or 'the bank' is often preferred unless discussing specific legal proceedings like bankruptcy.
Common Mistakes
Learners often mix up 'creditor' and 'debtor'. Remember that the 'or/er' ending often signifies the person performing the action (giving credit).
Memory Tip
The word comes from the Latin 'credere' (to believe). A creditor is someone who 'believes' or trusts that you will pay them back.
Word Origin
Derived from the Latin 'creditor', which comes from 'credere' meaning 'to trust, entrust, or believe'.
Grammar Patterns
Cultural Context
In capitalist economies, the legal rights of creditors are strictly enforced to maintain trust in the financial system and encourage lending.
Quick Quiz
When the retail chain went bankrupt, every ______ had to file a formal claim to recover their funds.
Correct!
The correct answer is: creditor
Related Vocabulary
Related Words
to
A1Used to indicate the place, person, or thing that someone or something moves toward. It can also mark the recipient of an action or the limit of a range.
and
A1A primary conjunction used to connect words, phrases, or clauses that are grammatically equal. It indicates addition, a sequence of events, or a relationship between two things.
a
A1A word used before a singular noun that is not specific or is being mentioned for the first time. It is used only before words that begin with a consonant sound to indicate one of something.
that
A1This word is a demonstrative pronoun used to indicate a specific person, object, or idea that is further away in space or time from the speaker. It is also used to refer back to something that has already been mentioned or to introduce a clause that identifies something.
I
A1The pronoun 'I' is used by a speaker or writer to refer to themselves as the subject of a verb. It is the first-person singular subject pronoun in English and is always capitalized regardless of its position in a sentence.
for
A1Used to show who is intended to have or use something, or to explain the purpose or reason for an action. It is also frequently used to indicate a specific duration of time.
not
A1A function word used to express negation or denial. It is primarily used to make a sentence or phrase negative, often following an auxiliary verb or the verb 'to be'.
with
A1A preposition used to indicate that people or things are together, in the same place, or performing an action together. It can also describe the instrument used to perform an action or a characteristic that someone or something has.
he
A1A pronoun used to refer to a male person or animal that has already been mentioned or is easily identified. It functions as the subject of a sentence.
you
A1Used to refer to the person or people that the speaker is addressing. It is the second-person pronoun used for both singular and plural subjects and objects.
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