Seperate creditors in bankruptcy proceedings

Bankruptcy is a special non-litigation court procedure aimed, according to Article 2, Paragraph 2 of the Bankruptcy Act, at the total settlement of creditors of the bankrupt debtor by liquidating his assets and distributing the collected funds to the creditors. The Bankruptcy Act distinguishes four types of creditors (separational creditor, seperate creditor, estate creditor, and bankruptcy creditor). In the following text, the concept of the seperate creditor will be elaborated in more detail. Who is a seperate creditor? A seperate creditor is a person who holds a lien or a right to settlement over a specific asset or right that is registered...

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