Creditor Protection
/ˈkrɛdɪtər prəˈtɛkʃən/
Definitions
- (n.) Legal measures and frameworks designed to secure the rights and claims of creditors against debtors to ensure repayment or compensation.
The bankruptcy law includes stringent creditor protection provisions to minimize losses.
- (n.) Statutory or contractual provisions that prioritize creditors' interests in case of debtor insolvency or restructuring.
Creditor protection clauses often determine the order of claims during reorganization.
Forms
- creditor protection
Related terms
See also
Commentary
Creditor protection typically involves legal tools such as security interests and priority rules; drafting should clearly specify the scope and enforceability to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.