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Simple English definitions for legal terms
list of creditors
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A quick definition of list of creditors:
A list of creditors is a document that includes the names and addresses of people or companies that are owed money. This list is important in a bankruptcy case because it helps the court determine who needs to be paid and how much they are owed. Think of it like a shopping list, but instead of groceries, it's a list of people who need to be paid back.
A more thorough explanation:
A list of creditors is a document that contains the names and addresses of people or companies that are owed money by an individual or business. This list is usually required in a bankruptcy proceeding.
John is filing for bankruptcy and needs to provide a list of his creditors. His list includes:
- ABC Bank - $10,000
- XYZ Credit Card Company - $5,000
- Joe's Auto Repair - $2,500
In this example, John owes money to three different creditors and their names and the amounts owed are listed in his list of creditors.
Another example could be a business that is struggling to pay its bills and needs to create a list of all the companies it owes money to. This list would include the names and addresses of each creditor, along with the amount owed.