In a debt, what is the person or company that is owed money called?
AnswerThe creditor
A creditor is owed money; the word comes from Latin 'credere', to trust or believe.
Money · Facts & stats
Bankruptcy facts & stats
7 fact-checked facts about bankruptcy, each with the reason behind it. 5 more are in today's round and join this page after it closes.
The basics
Being unable to pay debts when they are due is known as what?
AnswerInsolvency
Insolvency means debts can't be paid as they fall due; solvency is the opposite.
Going deeper
Which US bankruptcy chapter is mainly used by businesses to reorganize while continuing to operate?
AnswerChapter 11
Chapter 11 lets a business keep operating while it works out a court-approved plan to repay creditors.
Which novelist's father was held in London's Marshalsea debtors' prison, an experience echoed in 'Little Dorrit'?
AnswerCharles Dickens
John Dickens was imprisoned in the Marshalsea for debt in 1824, when his son Charles was 12.
In bankruptcy, what is a 'discharge'?
AnswerA court order releasing the debtor from certain debts
A discharge releases the debtor from personal liability for many debts, so creditors can no longer collect them.
Expert level
Which article of the US Constitution gives Congress the power to make uniform bankruptcy laws?
AnswerArticle I
Article I, Section 8 lets Congress establish 'uniform Laws on the subject of Bankruptcies' across the country.
In US bankruptcy, what is the 'automatic stay'?
AnswerAn order that halts most collection actions once a case is filed
Filing a bankruptcy case triggers an automatic stay that stops most creditor collection efforts.
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