What is the legal process by which a debtor can make a fresh start through the sale of assets to pay off creditors?
(the legal process by which the assets of a debtor are sold to pay off creditors so that the debtor can make a fresh start financially). a proceeding designed to liquidate a debtor's property, pay off creditors, and discharge the debtor from most debts. also called liquidation and straight bankruptcy.
What are 3 responsibilities you have to your creditors?
Three responsibilities you have to your creditor are to limit your spending to amounts that you can repay according to the terms of the credit agreement, make all payments promptly, on or before the due date, when signing a credit application, and contacting the creditor immediately when you find a problem with the ...
How are debtors treated?
Bad Debts Recovered If the amount recovered doesn't exceed the expected, then the remaining amount will be treated as bad debts. If the amount received exceeds the recoverable amount, then the excess amount received will be treated as the income in the financial year of the receipt.
What are your responsibilities as a debtor?
Q 3.4 What are the debtor's immediate duties? To obtain relief under the Bankruptcy Code, a debtor must initially do three things, in this order: (1) obtain a pre-petition credit counseling briefing; (2) file a petition that comports with Official Form 1; and (3) pay the filing fee.
Who is a debtor?
A debtor is a company or individual who owes money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower, and if the debt is in the form of securities—such as bonds—the debtor is referred to as an issuer.
Who are creditors and debtors?
In every credit relationship, there's a debtor and a creditor: The debtor is the borrower and the creditor is the lender. Your own obligations differ depending on which role you play. Here's what you need to know about the relationship between these two terms, and how to make sure you're doing your part.
How many types of debtors are there?
24-Type of Debtor.
What is an example of a debtor?
A debtor is a term used in accounting to describe the opposite of a creditor – an individual that owes money, or who is in debt to an organisation or person. For example, a debtor is somebody who has taken out a loan at a bank for a new car. Examples of debtors: Trade debtors – money owed from customers.
Who are creditors in accounting?
A term used in accounting, 'creditor' refers to the party that has delivered a product, service or loan, and is owed money by one or more debtors. A debtor is the opposite of a creditor – it refers to the person or entity who owes money.
What is the obligation of debtor to the creditor?
The money or service that the debtor owes to the creditor is called the debt or the obligation. A debtor may also be referred to as the obligor and the creditor, the obligee.
What are the 5 duties of debtor?
9.2. 2. DUTIES OF DEBTOR TO GIVE A DETERMINATE THINGPreserve the thing - the obligor has the duty to take care of the thing in the contract.Deliver the fruits of the thing.Deliver the accessions and accessories.Deliver the thing itself.Answer for damages in case of non-fulfillment or breach.
What are the rights of debtors?
Description. Protection for individuals who are unable to repay loans or other financial obligations. The contractual rights of the lender are qualified by the right of the debtor to their freedom or dignity.