Your rights as a creditor to obtain satisfaction from the debtor depend on the type of debt that is owed to you.
There are two major types of debt:
The creditor with a secured debt is usually able to acquire the property that the debt is secured to, often through either a repossession or foreclosure.
If the attached property is a vehicle, furniture, or large appliance, repossessing the property is a way to recover for an unpaid debt. Repossessions can be done in a number of ways:
If the attached property is a house or another form of real property, then the creditor may begin foreclosure proceedings against the property in order to have the unpaid debt satisfied through the sale of the property.
Collecting an unsecured debt is usually more difficult than collecting a secured debt. The first step to the collections process is to try to collect the debt yourself through reminder invoices and demand letters. If the debt remains unpaid, you can then hire a collection agency. If the collection agency fails, your last option is to file a lawsuit against the debtor.
There are many different legal procedures that a qualified lawyer can inform you of to limit your own liability, and increase your chances of collecting the debt. If you choose to go to court, a lawyer can be vital to getting a judgment against the debtor.
Last Modified: 06-04-2014 05:00 PM PDTLaw Library Disclaimer
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