Creditor/Debtor Rights
Which include the following case types:
- Breach of Contract
- Debt Collection
- Collection on Judgments
- Violation of the Fair Debt Collection Practices Act
The term “creditor’s rights” refers to the set of provisions that protect the ability of creditors to collect debt. Varying from one jurisdiction to another, the provisions allow for the following legal actions, among others: putting a lien on a debtor’s property to effect a seizure and forced sale of the property, effecting a garnishment of the debtor’s wages and designating certain purchases made by the debtor as fraudulent conveyances. The rights of a creditor depend largely on why a debt is owed and the written terms of the debt.
Priority of Creditors
In addition to establishing a creditor’s rights against debtors, creditor’s rights establish the rights of creditors against one another. For example, when numerous creditors have a right to levy against the same piece of property, the rules governing creditor’s rights assess which creditor has the strongest right to the debtor’s property.
Creditors are generally divided into two categories: creditors that have “perfected” their interest by establishing a public record of the debt and anything claimed as collateral for it, and creditors that have not. Creditors are also classified based on whether or not they are “in possession” of the collateral and by whether the debt results from a purchase money security interest. Creditors will ask the Court to set aside fraudulent conveyances that keep a debtor’s assets out of their reach.
Legal Practices
Some attorneys who focus in the collection of debts and are often referred to as collection attorneys. Attorneys practicing in the area of creditor’s rights typically perform the following services:
Employment of lawsuits and other legal collection techniques to collect individual consumer debts.
Employment of lawsuits and other legal collection techniques to collect commercial debts.
Representation of creditors’ interests in bankruptcy proceedings.
Foreclosure on real estate if the purchaser defaults on payment.
Recovery of secured goods such as automobiles if the purchaser defaults on payment.
