A creditor is a person or entity that lends money or extends credit to another person or entity.
There are many types of creditors, including banks, credit card companies, mortgage lenders, and other financial institutions.
A secured creditor is a creditor who has a security interest in the property of the debtor. This means that if the debtor defaults on the loan, the creditor has the right to take possession of the property.
An unsecured creditor is a creditor who does not have a security interest in the property of the debtor. This means that if the debtor defaults on the loan, the creditor does not have the right to take possession of the property.
A debt collector is a person or entity that collects debts on behalf of a creditor.
You have the right to dispute the debt, request verification of the debt, and request that the debt collector stop contacting you.
Yes, a creditor can seize your property if they have a court order.
Yes, a creditor can sue you if you fail to repay a debt.
You should contact your creditors and try to work out a payment plan or seek the advice of a credit counselor or bankruptcy attorney.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 25th April 2024.
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