Legal Definitions - creditor's suit

Definition: A creditor's suit, also known as a creditor's bill, is a legal action taken by a creditor to reach property that cannot be reached through the normal process of enforcing a judgment. This is an equitable suit that allows a judgment creditor to seek relief from the court to collect on a debt owed to them.

• If a creditor has obtained a judgment against a debtor but the debtor has no assets that can be seized to satisfy the judgment, the creditor may file a creditor's suit to try to reach other property that the debtor owns.
• For example, if a debtor owns a piece of property that is held in a trust, the creditor may file a creditor's suit to try to reach that property and satisfy the judgment.

These examples illustrate how a creditor's suit can be used to reach property that would otherwise be protected from seizure by a judgment creditor. By filing a creditor's suit, the creditor is seeking to obtain relief from the court that will allow them to collect on the debt owed to them.