Creditors (stakeholders in insolvency)

Creditors are individuals or organizations that are owed money by a person or business facing insolvency, which is the inability to pay debts. In this context, creditors play a crucial role as stakeholders because they seek repayment of their loans or outstanding balances. There are different types of creditors, such as secured creditors, who have collateral backing their loans, and unsecured creditors, who do not. When insolvency occurs, creditors often participate in the process to recover as much of their money as possible, influencing decisions about asset liquidation and restructuring plans.