Are there collection alternatives to foreclosure action in federal court?
Yes, there are other collection avenues, all of which will usually be less expensive to pursue. Preferred ship mortgages often provide for private repossession as an alternative to judicial foreclosure, though jurisdictions differ on the validity of such provisions. Some transactions give rise to both maritime and state-law liens, enabling the creditor to act on the latter only, pursuant to procedures prescribed by state law. The vessel owner may agree in advance to subject his vessel to a UCC security interest and lien under state law, which could be pursued with procedures allowed under state law. Where debts to a municipality are concerned, local ordinances may authorize the harbor department to pursue administrative collection procedures. Finally, the creditor could elect to sue the vessel owner or operator personally for the underlying debt secured by a maritime lien. Debts not exceeding $7,500.00 may be pursued economically in small claims court. If the creditor wins a judgment a
Related Questions
- Is there a disadvantage to pursuing collection action against a vessel in some way other than judicial foreclosure in federal court?
- Does a foreclosure action in a court of equity substantially affect a lender’s right to enforce loan obligations against a borrower?
- Are there collection alternatives to foreclosure action in federal court?
