receiver-creditor relation

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Word: Receiver-Creditor Relation

Definition: The "receiver-creditor relation" refers to the responsibility of a receiver (or trustee) in a bankruptcy situation to act in the best interests of the creditors. In simple terms, when a business cannot pay its debts, a receiver is appointed to manage the business's assets and make sure that the creditors (the people or organizations owed money) are treated fairly and get as much of their money back as possible.

Usage Instructions:

1. Context: This term is used mainly in legal and financial discussions, particularly when talking about bankruptcy or insolvency.
2. How to Use: You can use this term when discussing the responsibilities of a receiver in a bankruptcy case. For example, "The receiver-creditor relation is crucial in ensuring that creditors are compensated fairly."

Example:

• "In the receiver-creditor relation, the receiver must prioritize the claims of all creditors to manage the assets effectively."

Advanced Usage:

In legal documents or discussions, you might encounter more complex phrases like "fiduciary duty," which relates closely to the receiver-creditor relation, meaning that the receiver must act in good faith and with the interests of the creditors in mind.

Word Variants:

• Receiver: The person or entity appointed to manage the debtor's assets.
• Creditor: The person or entity to whom money is owed.
• Trustee: A person or organization that holds and manages assets for the benefit of others, often synonymous with receiver in bankruptcy.

Different Meanings:

While "receiver-creditor relation" specifically refers to bankruptcy, the individual terms "receiver" and "creditor" can have broader meanings: - Receiver: Can refer to anyone receiving something, like a signal, or a person who accepts goods or services. - Creditor: Generally refers to anyone who is owed money, not just in bankruptcy situations.

Synonyms:

• Fiduciary relationship: A relationship based on trust and responsibility.
• Debt management relationship: A more general term referring to how debts are managed between parties.

Idioms and Phrasal Verbs:

• "In good faith": Acting honestly and sincerely, which is important in the receiver-creditor relation.
• "Pay off debts": To settle what is owed, often a goal of the receiver managing the assets.

Academic

Noun

1. the responsibility of receiver or trustee in bankruptcy to act in the best interests of the creditor