Creditor

Creditor in Dictionary

The obligee has a claim against a debtor . This means that the believer is the one to whom something is owed. He is thus facing the debtor who has to pay off a debt.
The debt can be a financial performance, the delivery of goods, or the provision of services. In the German Civil Code (ยง 241 BGB) the legal term of the creditor is precisely defined. In economic life, natural and legal persons have always acted as creditors and debtors.

The various forms of debt relationship

According to Gradchem, the obligee has a claim against the debtor and this can be of a very different nature. In the case of a loan, for example, the bank’s requirement is that the debtor pays or transfers the installments that have been agreed on on the respective dates. When it comes to a sales contract, the obligee has the right to have the buyer settle the invoice amount on the contractually agreed date. At the same time, however, a seller also takes on the role of debtor with regard to the goods, because he is obliged to make the goods available in good time at the specified time.

The assertion of financial claims

If a debtor does not meet the legitimate demands of the obligee, then he must assert his claims. If cash payments fail, then he must first extrajudicial enforcement proceedings initiated and continues with the admonitions then certain payment periods and also requires well overdue fines. Many companies then transfer this procedure to a debt collection agency or a lawyer from a certain dunning level in order to relieve themselves of the bureaucratic effort. The judicial dunning procedure is to be distinguished from it. The obligee has the right to apply for a payment order and if the debtor does not contradict this within a certain period or settle the claim, an enforcement order can be issued by the competent court.

The lack of other services

The jurisprudence provides a different approach if the creditor is entitled to a good or a service. As a rule, in the event of service disruptions, a reasonable deadline must be set to fulfill the contract, such as the delivery of the ordered goods. Only when this period expires without the contract being fulfilled, further steps, such as a lawsuit, are recommended. But which claims can be asserted differs from case to case. In some cases, a client can only exercise his right of withdrawal and in some cases can also demand compensation.

The most important key points on the term believer

  • He demands a certain performance from the debtor
  • He can assert his claim through dunning procedures and legal action
  • It is important to minimize the risk in advance
  • In insolvency proceedings, there is often a partial waiver

As a creditor, minimize your risk

Buyers of goods and services can reduce the risk by specifically looking for a trustworthy contractor. For example, an online customer pays attention to the company’s reputation and a seal of approval. But when it comes to monetary claims, there are two ways to minimize your risk as a creditor.

As a company, you can ask for prepayment where the money is accepted directly or especially in online trading where payment systems such as PayPal and instant transfer are used. The matter is more difficult with long-term contracts with regular claims and these include loan, insurance and mobile phone contracts. In these cases, the providers check the first with very different degrees of intensity Consumer’s creditworthiness . For example, Schufa is available or other information files that keep a list of past payment defaults. Based on this, the creditworthiness is then assessed on the basis of very different characteristics. When it comes to a loan agreement, proof of income is usually required.

The waiver of claims

It often happens that a creditor only receives part of his claims and that happens, especially if the debtor goes bankrupt (company bankruptcy or consumer bankruptcy proceedings). In that case, the debtor is then over-indebted. In this case, creditors either voluntarily waive the claims in order to receive at least a certain share. The waiver can, however, also take place completely against the will of the obligee, because in consumer insolvency proceedings, for example, the majority of the obligee or the court decides accordingly.

Summary

In summary, that means that the creditor in a debtor relationship is always the one to whom something is owed. When a bank grants a loan, it becomes a creditor and the recipient of the loan becomes a debtor.

As soon as a company has delivered a good or a service, but the customer does not pay immediately, a debt relationship arises in which the supplier becomes the creditor and the customer becomes the debtor. By the way, in this context, the terms creditor (creditor) and debtor (debtor) are often used .

Creditor