kröfuhafi

Kröfuhafi is a term used in Icelandic law and finance to refer to a person or organization that holds a claim against another party. In practical terms, a kröfuhafi is a creditor to whom money is owed or to whom a performance is due.

Etymology: The word is formed from kröfu, meaning claim, and haf(i), a suffix denoting a holder or possessor. The term thus literally means the holder of a claim.

Role and rights: A kröfuhafi has the right to demand fulfillment of the obligation, whether it is payment or performance, and to seek remedies if the obligation is not met. Creditors may exercise rights under contract, law, and applicable debt-collection procedures, including the possibility of charging interest, pursuing legal action, or transferring the claim through assignment or sale.

Insolvency and restructuring: In bankruptcy or rescue proceedings, a kröfuhafi proves its claim in the creditors’ body. The treatment of the claim depends on its nature and ranking: secured claims backed by collateral typically have priority over unsecured claims, and certain statutory or employee-related claims may receive special treatment under the insolvency framework. The exact distribution among creditors follows the applicable rules and court decisions.

Examples: Banks and financial institutions owed money, suppliers with unpaid invoices, or individuals owed a debt by another person can act as kröfuhafar.

See also: kröfu, skuld, insolvensía and related Icelandic terms.