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Debtor-creditor law governs situations where one party is unable to pay a monetary debt to another. There are three types of creditors. First are those who have a lien have a charge against a particular piece of property. This property (or proceeds from its sale) must be used to satisfy the debt to the lien-creditor before it can be used to satisfy debts to other creditors. A lien may arise through statute, agreement between the parties, or judicial proceedings.
Non-bankruptcy debtor-creditor law arises mainly from state statutory and common law. Tort law, such as defamation, provides a means for state courts to limit private means of debt collection.
Creditors use judicial and statutory processes to have debts satisfied. Attachment is a limited statutory remedy whereby a creditor has the property of a debtor seized to satisfy a debt. Garnishment allows a creditor to collect part of a debt (for example wages) to satisfy the obligation. Replevin allows a creditor to seize goods, such as a security interest, that he or she has a property interest in, to satisfy the debt.
Read more about Mortgages & Loans at : http://www.ncua.gov/
Read more about Bank Accounts & Credit Cards at : http://www.ftc.gov/
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Facts About Debt Credit
