What can a creditor do to collect a debt?
A creditor has certain rights that are available under state and federal law to collect unpaid debts. These rights include: commencing a lawsuit to collect the debt and obtain a judgment; repossessing collateral (such as a car or boat) used to secure the loan; foreclosing on collateral (such as a house or commercial building); and garnishing the debtor’s wages. Another option available to creditors is forcing the debtor into “involuntary” bankruptcy.
Related Questions
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