Debtor/Creditor Information Center

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Americans-both individuals and businesses-owe record amounts of money. If you need legal assistance with either collecting debt or protecting your rights as a debtor, contact an experienced attorney today to discuss your rights and options.

Frequently Asked Questions about Debtor-Creditor Law

Q: Are there limits on what debt collectors or collection agencies can do when they attempt to collect delinquent debts?

A: Yes. The main federal law regulating debt collectors is the Fair Debt Collection Practices Act (FDCPA), first passed in 1977. Congress was concerned about ongoing abusive debt-collection practices that negatively impacted the lives of consumer debtors both personally and financially. Congress also wanted to level the playing field between honest and upright debt collectors and those using deceptive collection practices. Your state laws also may provide additional regulation of debt collection.

Q: What are the main provisions of the FDCPA?

A: The FDCPA forbids debt collectors, both attorneys and nonattorneys, from using certain questionable methods when attempting to collect consumer debts of a personal or family nature. Basically, debt collectors may not use unfair practices, harassment or false statements.

Asserting Your Rights as a Debtor or Creditor

When a person property or money from another person, the creditor has certain rights to enforce the agreement for the loan. As the debtor you have certain legal rights to be free from excessive debt collection efforts.

Our attorneys at Stepniak & Park, P.A. are experienced to help both creditors and debtors assert and protect their rights so that loan agreements can be made and carried out fairly. Below is some general information about debtors and creditors laws in the United States if you wish to speak with an experienced attorney please call 877-256-4750.

Debtor-Creditor Law - An Overview

Often everyday life does not involve courts and lawyers, when debtor-creditor situations become complicated, then you need to consider contacting an experienced attorney that specialized in debtor-creditor law to help you interact between the parties that owe money and the parties of which money is owed. For debt related questions, call Stepniak & Park, P.A. in Daytona Beach, Florida for reclaiming your financial security.

Creditors' Legal Remedies to Help Collect Debts

When a debtor fails to pay a debt, the creditor or the person or business to which the debt is owed, has several available remedies to help collect the money. These methods can include self-help remedies that are as simple as contacting the debtor directly and requesting payment or it may include non-judicial self help remedies that involve the courts. When informal attempts to collect fail, then usually a collection agency is involved.

Creditors can also repossess or foreclose on goods pledged as collateral for secured debts if debtors default on loan payments. The creditor can legally take back the property, sell it and apply the proceeds to pay off the debt. If the sale price is not enough to cover the full amount owed, the debtor may still be liable for the remainder.

Typical types of secured debts that may be collected thru repossession include:

Finance Company/Home Loans. When a borrower obtains a loan from a finance company and is asked to list things that he or she owns, it is possible that the finance company will obtain a security interest in the items listed, depending on the contract.
Vehicle Loans. When a person purchases a car on credit, the lender puts a lien on the car, which allows the lender to repossess the car if the borrower fails to make payments on time.
Credit Card Purchases. When consumers charge something that they purchase at a department store, the store may retain a security interest in the item purchased based on the agreement that the consumer signed when he or she first opened the account.

Foreclosures and repossessions involve taking back property secured by the loan. Foreclosures usually involve real property such as a home. These foreclosures may be non-judicial remedies or they may involve the courts depending on the agreement.

The other common creditors that can involve the courts are garnishment and attachment which like repossession involve taking back property with the help of the court.

Limits on Creditors' Rights Help Protect Debtors

The practices of debt collectors are regulated in order to avoid abuses. Under the federal Fair Debt Collection Practices Act (FDCPA), for instance, a debt collector can not::

Contact the debtor directly once the debtor is represented by an attorney, unless a court or the attorney gives the collection agency specific permission to do so.
Contact third parties other than the debtor's attorney or a credit bureau for any reason other than to locate the debtor. During such contact the collector must state his or her own name but cannot give the collection agency's name unless asked directly.
Contact a debtor at work or while on the job; contact debtors before 8:00 a.m. or after 9:00 p.m. or at another inconvenient time or place; or make phone contact without identifying himself or herself.
Publish a debtor's name on a "blacklist."
Threaten or use violence against the debtor or another person or use obscene or profane language.
Lie about the debt, their identity, or the amount owed or send documents that resemble court papers.

Conclusion

If you have questions about enforcing a valid debt or if you are the subject of debt-collection attempts, it is in your best interest to get in touch with an experienced debtor-creditor law attorney, such as one at Stepniak & Park, P.A. in Daytona Beach, Florida, to learn how to protect your legal rights.

DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.