creditor

Creditor is an adjective that names who has merit to get something, or right to request the fulfillment of an obligation. For example: "The Peruvian writer Mario Vargas Llosa won a new edition of the Nobel Prize for Literature", "The creditor of the distinction is the contestant number four".

Become a creditor of a thing or a title is the same as saying to 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 expressed by making use of this construction for its diffusion In the press ("Juan Pérez was awarded the first prize"), while in everyday speech one of the alternatives mentioned above is usually used ("Juan won the first prize").

A credit balance is the one that is in the to have a credit or an account, and it is a positive amount; on the contrary, it is known as the debit balance to the amount in red, which is not owned but is contained in the should.

The most common use of the concept points to who has the right to have a debt paid. The creditor, in this sense, is a person (either physical or legal) that is legitimately empowered 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 the right to collect with priority is known as preferred creditor.

The creditor has the right to demand full compliance with an obligation within the established period and, in the case in which the other party does not comply, can demand a compensation for damages.

There are different types of creditors according to the existing guarantees and the nature of the obligation. Although the creditor can demand the fulfillment of an obligation, generally the salary of the people is not fully attachable. Therefore, even when a person files for bankruptcy (indicating that they have no funds to pay a debt), the creditor cannot garnish the salary to make the payment, but only a percentage and according to certain specifications.

It is known by the name of bankruptcy to the legal procedure that begins when a natural or legal person (a society) becomes insolvent and does not have the necessary means to pay all of its debt. It includes bankruptcy and suspension of payments cases, 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, that he does not have the possibility of regularizing his payment obligations as required by the other parties. There are basically two types of contests of creditors, which are the following:

* volunteer: the one who urges the same debtor;
* necessary: the one that the creditors claim before the debtor does.

One of the advantages of the voluntary declaration in a situation of bankruptcy is that Only in this way does the debtor retain the powers to manage and dispose of their own assets; in the case of a necessary contest, said power remains in the hands of the administrators. On the other hand, it should be mentioned that the contest judge can make various modifications to these terms, as it sees fit.

Despite the fact that declaring voluntarily is always beneficial for the debtor, this measure does not prevent their habitual residence from being seized, according to the current Bankruptcy Law.