Everyone has heard of creditors, such as lenders and credit card companies, making harassing phone calls and intimidating letters. Usually, people hear about debtors suing those companies for being unlawful. However, there are plenty of times when the creditors should be the ones filing lawsuits. No one will be surprised to know that creditors have rights just like debtors do. There are certain legal procedures that they can undertake to get back the money owed to them.
The Efforts of the Creditor
The laws for creditor rights vary, but they exist in most jurisdictions. Before a creditor can take any action, he must show proof that the debtor understood the financial transaction and agreed to make repayments. For example, a lender for a student loan must order the borrower to sign an agreement. This document outlines the details of the loan, such as the requirements to keep the loan, the deadlines to make payments, interest rates, and repayment plan options. Without this evidence proving the existence of the loan, according to the law the creditor gave the funds as a gift.
Actions Taken by an Attorney
A Henderson creditor rights attorney helps the creditors to pursue a series of legal actions. Their clients are allowed to place a lien on the debtor?s possessions, such as a car or house. Creditors may be able to seize property or force the sale of certain property that does not have liens or damages.
In other cases, they may garnish wages from the borrower. The creditors can receive the court?s permission to freeze the person?s bank account and withdraw an appropriate amount of money. Also, the debtors may receive fraudulent conveyances of the major purchases they make. Some debtors transfer their money as a way to avoid paying the creditors.
Only a highly trained attorney knows when it is the right time to take the issue to court. Without the help of a lawyer, the creditor is acting unlawfully. The attorney works fairly with both sides on the issue. He figures out if and how the creditor has behaved inappropriately toward the debtor. He looks at the different ways that the creditor has tried to contact the debtor. Then, he looks over the loan agreement to see if it is valid and how reasonable the terms are. If every factor checks out fine for the creditor, the attorney decides which course of action to take immediately.
Both creditors and debtors have the right to get what they want. Debtors should stop being subject to harassment from creditors, while creditors should be able to get their money. The creditors? side of the story is usually more important because they lend money to people who promise to pay it back. They have the right to consult an attorney if their efforts have been in vain. A Henderson creditor rights attorney at website is available to provide the necessary assistance to these creditors.
