known creditor

Definition of "known creditor"
  1. A known creditor refers to a lender or financier whose possible claim is either already known or should have been known by a debtor. This creditor has the right to be notified about a corporate dissolution or a specific date after which claims will no longer be valid, such as in a bankruptcy situation
How to use "known creditor" in a sentence
  1. If they fail to pay, the known creditor will have the right to claim their assets in a bankruptcy situation.
  2. The company issued a notice to all known creditors about its impending dissolution.
  3. The debtor was directed to notify all known creditors of the scheduled date to bar all claims.

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