Cross-claims

In the context of creditor's rights, a cross-claim occurs when a debtor who is being sued by a creditor countersues, asserting their own claims against that creditor within the same legal action. For example, if a debtor owes money but believes the creditor improperly handled the account or caused them harm, the debtor can file a cross-claim. This process allows the court to address both parties' claims together, which can streamline legal proceedings and potentially reduce the debtor's liability if their claims are upheld.