Creditor / Debtor

Email: Contact Us

Many of our clients are involved in transactions where they borrow or lend money. An individual borrowing money is known as a Debtor and an individual lending money is known as a Creditor.

Creditor's rights will continue to be the source of much litigation. In order to assist a client in dealing with a Creditor's rights issue one must have a good understanding of the fundamental principals and specific remedies. Collection of debt is an extension of commercial law. It is often said that commercial law involves the making of a promise and collections involve the breaking of the promise. It should be obvious that in order to properly advise a client at the time of the making of the promise one ought to have forethought about what may occur in the event of the breaking of that promise.

It is also important to remember that, although Creditors have rights pursuant to the agreements they make with the Debtors and the laws of Alberta, Debtors also have rights under the laws of Alberta. There are often restrictions put on the Creditor's rights. Just as the Creditor has the right to issue a Statement of Claim, the Debtor has a right to issue a Statement of Defence. Just as a Creditor has the right to seize assets, a Debtor has a right to certain exemptions of their assets that cannot be seized.

Creditor and debtor rights involve a variety of assets including land and personal property. Creditors will generally take a security interest in some property of the Debtor to ensure repayment of the money lent to the Debtor. The Mortgage is probably the most common type of security taken which ensures that in the event the Debtor does not pay the debt owed to the Creditor, then the Creditor has a right to seize and sell the land against which the Mortgage was registered. Creditors are able to take a security interest in personal property or chattels under the Personal Property Security Act whereby the security interest is registered in the Personal Property Registry.

It is easy to see how the Debtor/Creditor issues become very complicated especially considering that there is a wide variety of contractual and legislated rights and remedies. At North & Company we are able to provide you with many years of extensive experience in the rights and remedies of Debtors and Creditors. These rights and remedies include taking legal action, foreclosures, seizures and Garnishee Summons. North & Company would be more than willing to help you with all of your Debtor and Creditor issues that may arise.

Thank you for your interest in our Debtor/Creditor summary.