Friday, February 28, 2014

WORD DEFINITIONS – DEBTOR, CREDITOR, JUDGEMENT DEBTOR, JUDGEMENT CREDITOR

Judgment Creditor 
 A party to which a debt is owed that has proved the debt in a legal proceeding and that is entitled to use judicial process to collect the debt; the owner of an unsatisfied court decision.

A party that wins a monetary award in a lawsuit is known as a judgment creditor until the award is paid, or satisfied. The losing party, which must pay the award, is known as a Judgment Debtor. A judgment creditor is legally entitled to enforce the debt with the assistance of the court.

State laws provide remedies to a judgment creditor in collecting the amount of the judgment. These measures bring the debtor's property into the custody of the court in order to satisfy the debtor's obligation: they involve the seizure of property and money. The process of enforcing the judgment debt in this way is called execution. The process commences with a hearing called a supplementary proceeding. The judgment debtor is summoned to appear before the court for a hearing to determine the nature and value of the debtor's property. If the property is subject to execution, the court orders the debtor to relinquish it.

Because debtors sometimes fail to surrender property to the court, other means of satisfying the debt may be necessary. In these cases the law refers to an unsatisfied execution—an outstanding and unfulfilled order by the court for property to be given up. Usually this will lead the judgment creditor to seek a writ of attachment, the legal means by which property is seized. To secure a writ of attachment, the judgment creditor must first place a judgment lien on the property. Also called an encumbrance, a lien is a legal claim on the debtor's property that gives the creditor a qualified right to it. Creditors holding liens are called secured creditors. The writ of attachment sets in motion the process of a levy, by which a sheriff or other state official actually seizes the property and takes it into the physical possession of the court. The property can then be sold to satisfy the debt.

Occasionally the judgment creditor is frustrated in the course of enforcing a judgment debt. Debtors may transfer property to another owner, which makes collection through attachment more difficult. Liens on property usually prevent the transfer of ownership. Where a transfer of ownership has occurred, state laws usually allow the judgment creditor to sue the third party who now possesses the property. Some states provide additional statutory relief to creditors in cases where debtors fraudulently transfer assets in order to escape a judgment debt. Florida's Uniform Fraudulent Transfer Act (Fla. Stat. § 726.101 et seq.), for instance, allows creditors more time to pursue enforcement of the debt.

Another process for recovery is Garnishment, which targets the judgment debtor's salary or income. Through garnishment a portion of the judgment debtor's income is regularly deducted and paid to the judgment creditor. The creditor is known as a garnishor, and the debtor as a garnishee.

Further readings

Lippman, Steven N. 1996. "Proceedings Supplementary and Uniform Fraudulent Transfer Act: Dual Remedies to Execute Against a Judgment Debtor's Transferred Assets." Florida Bar Journal 70 (January).
West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

judgment creditor 

n. the winning plaintiff in a lawsuit to whom the court decides the defendant owes money. A judgment creditor can use various means to collect the judgment. The judgment is good for a specified number of years and then may be renewed by a filed request. If the defendant debtor files for bankruptcy, the judgment creditor will have priority (the right to share in assets) ahead of general creditors who are not secured by mortgages or deeds of trust and do not have judgments. However, if the bankrupt person has no assets, this becomes an empty advantage. (See: judgment, prevailing party, creditor's rights)
Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
 

debtor

debt·or  (dĕt′ər)
n.
1. One that owes something to another.
2. One who is guilty of a trespass or sin; a sinner.

[Middle English dettour, from Old French dettor, from Latin dēbitor, from dēbitus, past participle of dēbēre, to owe; see debt.]
The American Heritage® Dictionary of the English Language, Fourth Edition copyright ©2000 by Houghton Mifflin Company. Updated in 2009. Published by Houghton Mifflin Company. All rights reserved.

debtor (ˈdɛtə)
n
1. (Banking & Finance) a person or commercial enterprise that owes a financial obligation. Compare creditor
Collins English Dictionary – Complete and Unabridged © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003

debt•or (ˈdɛt ər)

n.
a person, company, or nation in debt or under financial obligation.
[1250–1300; Middle English detto(u)r < Old French det(t)or < Latin dēbitōrem, acc. of dēbitor <dēbi-, variant s. of dēbēre (see debt)]
Random House Kernerman Webster's College Dictionary, © 2010 K Dictionaries Ltd. Copyright 2005, 1997, 1991 by Random House, Inc. All rights reserved.
Thesaurus Legend:  Synonyms Related Words Antonyms
Noun1.debtor - a person who owes a creditor; someone who has the obligation of paying a debt
individual, mortal, person, somebody, someone, soul - a human being; "there was too much for one person to do"
deadbeat, defaulter - someone who fails to meet a financial obligation
fly-by-night - a debtor who flees to avoid paying
mortgager, mortgagor - the person who gives a mortgage in return for money to be repaid; "we became mortgagors when the bank accepted our mortgage and loaned us the money to buy our new home"
creditor - a person to whom money is owed by a debtor; someone to whom an obligation exists
Based on WordNet 3.0, Farlex clipart collection. © 2003-2012 Princeton University, Farlex Inc.

debtor
noun borrower, mortgagor, loanee, drawee For every debtor there's a creditor.
Collins Thesaurus of the English Language – Complete and Unabridged 2nd Edition. 2002 © HarperCollins Publishers 1995, 2002


creditor
 
cred·i·tor  (krĕd′ĭ-tər)
n.
One to whom money or its equivalent is owed.
The American Heritage® Dictionary of the English Language, Fourth Edition copyright ©2000 by Houghton Mifflin Company. Updated in 2009. Published by Houghton Mifflin Company. All rights reserved.

creditor (ˈkrɛdɪtə)
n
1. (Commerce) a person or commercial enterprise to whom money is owed. Compare debtor
Collins English Dictionary – Complete and Unabridged © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003

cred•i•tor (ˈkrɛd ɪ tər)

n.
a person or firm to whom money is due.
[1400–50; late Middle English < Latin]
Random House Kernerman Webster's College Dictionary, © 2010 K Dictionaries Ltd. Copyright 2005, 1997, 1991 by Random House, Inc. All rights reserved.
Thesaurus Legend:  Synonyms Related Words Antonyms
Noun1.creditor - a person to whom money is owed by a debtor; someone to whom an obligation exists
individual, mortal, person, somebody, someone, soul - a human being; "there was too much for one person to do"
mortgage holder, mortgagee - the person who accepts a mortgage; "the bank became our mortgagee when it accepted our mortgage on our new home"
debitor, debtor - a person who owes a creditor; someone who has the obligation of paying a debt
Based on WordNet 3.0, Farlex clipart collection. © 2003-2012 Princeton University, Farlex Inc.
 


 

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