Define: Debtor And Creditor

Yes, a creditor can seek a court order to garnish your wages if you fail to pay your debts. However, there are certain limits on the amount that can be garnished, depending on your state’s laws.

Yes, if you have defaulted on a debt, a creditor may be able to obtain a court order to seize your property to satisfy the debt. However, there are exemptions that protect certain types of property, such as your primary residence or essential personal belongings.

Secured debts are those that are backed by collateral, such as a mortgage or a car loan. If you default on a secured debt, the creditor can repossess the collateral. Unsecured debts, on the other hand, are not backed by collateral and include credit card debts or medical bills.

Once you file for bankruptcy, an automatic stay goes into effect, which prohibits creditors from contacting you to collect debts. However, there are exceptions for certain types of debts, such as child support or tax obligations.

While a creditor can technically file a lawsuit for a debt that is past the statute of limitations, you can raise the defence of the expired statute of limitations in court. If successful, the court will dismiss the case.

In most cases, a creditor must provide notice before repossessing your vehicle. The specific notice requirements vary by state, but generally, you must be given an opportunity to catch up on missed payments or surrender the vehicle voluntarily.

Yes, if a creditor obtains a judgment against you, they can seek a court order to freeze your bank account and collect the debt. However, certain funds, such as Social Security benefits or child support payments, may be exempt from being frozen.

Yes, unless otherwise specified in the contract or prohibited by state law, a creditor can continue to charge interest on a debt even after you have defaulted. This can result in the total amount owed increasing over time.

No, if a debt has been properly discharged in bankruptcy, the creditor is prohibited from taking any further legal action to collect the debt. If they do, you can bring it to the attention of the bankruptcy court.

No, creditors are prohibited from engaging in harassing or abusive behavior to collect a debt. This includes excessive phone calls, threats, or using deceptive tactics. If you experience harassment, you can file a complaint with the Consumer Financial Protection Bureau or take legal action.