Creditors & Debtors

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Brittany Beaulieu
September 28, 2015

Creditors & Debtors
PA261: Bankruptcy & Creditor/Debtor Law
Unit One Assignment

Professor Dean Poirier
Kaplan University

Creditors & Debtors: Rights & Remedies Creditor and debtor fulfill very different roles, and both have their own respective risks and obligations, along with their own personal rights, protections, and remedies. Unfair, deceptive, or abusive debt collection tactics are fairly common, so the federal government has enacted laws specifically for consumer protection. Although these protections are in place for the debtor, the creditor is not exactly at a disadvantage. Just as the debtor has the right to have his payment accepted, the creditor also has the right to receive the payment that was agreed upon. When the contract is broken, the creditor has specific tools at his disposal that can be utilized in a court of law. For example, if the debtor has defaulted, the creditor has the ability to acquire ownership of any collateral on a secured debt (Goel 2014). Or a claim can be filed to move for an order of attachment or garnishment of wages up to 25%, or to file a lien on the debtor’s property (Goel 2014). Additionally, the creditor can also file to initiate foreclosure or even involuntary bankruptcy of the debtor (FindLaw 2015). The creditor is fully within his rights to move against the debtor legally to recoup the debt. He has an arsenal of valid legal tactics to exercise against the debtor in order to do so. Accordingly, both parties are provided with ample protections and insurances, and are pretty evenly matched when following a proper legal process. However, when collection agencies are involved, the debtor in many cases can end up being harassed, abused, or subjected to defamation, deception, or manipulation. Many of the protections for consumers that are outlined…...

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