Welcome to Creditor Guide
Creditor Child Support Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
The Complexity of a Contingent Creditor
from:The word contingent refers to "likely" or "possibly", therefore a contingent creditor would seem to be defined as a creditor with "a creditor event or condition that is likely but not inevitable." But in the credit field, a person is a company's creditor if money is owed to that person. This person has provided some sort of services or goods to that company, or even made financial loans to the company. In fact, someone who works for a company, owed money for unpaid wages and so on, is considered a creditor.
But a contingent creditor is one who may be owed a certain amount of money, if certain events are to occur—such as successfully laying a legal claim against the said company. There are several types of creditors: related, secured, and contingent creditor. To help define the term "contingent creditor," looking at a contingent asset may help as it would have an opposite meaning.
An asset that is contingent is an asset that is potential, associated with a possible or likely gain. This is different from a contingent liability or contingent loss, as the assets and gain that are contingent are not recorded in the company's accounts. In other words, a contingent liability is a potential liability—and a contingent creditor is a potential debt collector. One example used to explain it better was the purchase of a card for a grandchild. Obviously, the car is guaranteed to be paid by the grandparents, signing on the grandchild's first loan as co-signers. If the grandchild pays the loan off on time or even earlier, there will be no liability toward the grandparents. But if the grandchild fails to make the payments, the grandparents will have a liability against them. A contingent creditor is claimed if the company finds the grandparents guilty of non-payment, instead of the grandchild as the loan papers were signed by the grandparents, not the grandchild.
The term contingent creditor refers to a case or situation that may happen, but yet is not finalized in court. Many cases have such situations, such as individual death, loans, banks, loan companies, and so on. A contingent creditor refers to a bank or company who files a lawsuit against a particular company which has a contingent liability or loss contingency. A liability and loss against the company is filed only if the company is found legally guilty of non-payment. If the company is found non-guilty for whatever reason, the contingent liability is not considered an actual liability or loss. Therefore, until a company goes to court, the term contingent creditor plays a big factor on what is owed or needs to be paid by the company in debt.
Creditor Child Support Specific links
Creditor Child Support News
How to Loan Your Adult Child Money
Parents always want the best for their children, but experts warn that making loans to grown children without strict guidelines can cause dependency and ruin relationship.
Read more...214 New Laws Take Effect Jan. 1, 2012
More than 200 new laws, covering everything from local library boards to murder, will take effect Jan. 1.
Read more...Four Smith Debnam Attorneys Selected as 2012 North Carolina Super Lawyers®
Super Lawyers recognizes Jerry T. Myers, John W. Narron, Rose H. Stout, and Bettie Kelley Sousa of Smith DebnamRaleigh, NC (PRWEB) May 15, 2012 Jerry T. Myers, John W. Narron, Rose H. Stout, and Bettie Kelley Sousa, Partners of Smith Debnam have been selected as 2012 North Carolina Super Lawyers®. Super Lawyers recognizes outstanding lawyers from more than 70 practice areas who have attained a ...
Read more...Three Smith Debnam Attorneys Selected as 2012 Rising Stars in North Carolina Super Lawyers®
Lynn Wilson Lupton, John Sperati, and Alicia Jurney Whitlock named Super Lawyers Rising StarsRaleigh, NC (PRWEB) May 15, 2012 Smith Debnam is proud to announce that Lynn Wilson Lupton, John Sperati, and Alicia Jurney Whitlock, attorneys with the firm, have been listed as 2012 Rising Stars in North Carolina Super Lawyers®. Rising Stars recognizes accomplished attorneys who are 40 or under, or who ...
Read more...The ties that bind
A businessman reassures a woman while discussing finances or legal matters in her home. / Thinkstock/Getty Images/Comstock Images Matthew Wallace This is the mug shot for his column, Planning Matters.
Read more...