Glossary

Frequently used terms:


Term: Meaning:
Debtor A debtor is a person who has contractual obligation towards a creditor.
Creditor Creditor is a obligatory relations party authorized by the other party (debtor) to demand certain rights, doing or not doing something or to waive something from the other party (debtor). It is a two way realtion in which both parties have rights and obligations.
Claim/debt Obligation of a natural person or a legal entity (debtor) to pay something (usually money) to the other party, creditor.
Interest Interest is a charge in money for borrowed amount which is paid by the borrower to the lender. Interest rate is reflected in percentage and it is considered the price of money or capital which the borrower or the debtor is paying for using borrowd money or capital.
Default interest Default interest is a sanction for a debtor who is late with fulfilling their monetary obligations, the interest rate is prescribed by related law acts. Creditor is entitled to the default interest regardless if there had been any damage to them due to debtors delay.
Enforcement proceedings Enforcement proceeding is a proceeding in which a creditor achieves their claim through court or a public notary. Enforcement request can be sent based on valid authentic documents enforcement documents.
Transfer of financial claims/Cession Transfer of financial claims/Cession goes from a previous creditor to a new creditor, whereas the claim and the debtor reamin the same. Possible legal grounds for the cession are contract, law act and court decision.



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