CREDITOR’S BILL
An equitable proceeding initiated by a person who
has obtained—and is entitled to enforce—a
money judgment against a debtor to collect the
payment of a debt that cannot be reached through
normal legal procedures.
A plaintiff might, for example, win a lawsuit
against a defendant whereupon the defendant
might be ordered to pay damages. In the event
that the defendant does not pay promptly, the
usual way for the plaintiff to obtain payment is
to pay a certain designated fee to the sheriff who
would seize the defendant’s property, sell it, and
pay the plaintiff with the proceeds. If, for exam-
ple, the defendant only has property that is
worth less than the plaintiff ’s judgment, the
plaintiff creditor might pursue the defendant’s
rights to collect money from others. The person
can then initiate a creditor’s bill, also known as
creditor’s suit, requesting that the court author-
ize a way to obtain the money affected by such
rights. Such funds as those that come from cor-
porate stock, ANNUITY checks, growing crops,
and money owed to the debtor from another
person can all be subjected to creditors’ suits. A
creditor’s bill cannot, however, be used to obtain
a liquor license, property in another state, or future unearned wages or salary.
