Who is a Secured Creditor?
have an interest in some sort of asset. These assets could include a car, boat, land, and other property. If you don’t pay the debt of a secured creditor, this creditor can seize the property.
Secured Debt: How to Collect
One of the major differences between a secured debt and an unsecured debt is the way the creditor can enforce its rights in the event that you do not make payments. A secured creditor can enforce its rights if you default on your loan obligations and have not filed bankruptcy. Methods that secured creditors can use to enforce secured debts include:
- Repossession: Secured creditors may not trespass on private property or breach the peace, but they usually do not have to go to court before repossessing cars or other motor vehicles.
- Foreclosure: A lender may enforce a home loan by foreclosing its mortgage. In some states, foreclosure does not require any court action and may be completed within a matter of a few months. In other states, where court approval is needed, foreclosure typically takes much longer. Lenders also can foreclose liens against personal property.
- Court action: A secured creditor also has the option of filing a court action to obtain a judgment against you. Depending on applicable state law, a creditor may seek a judgment for the entire obligation that you owe or the balance left after deducting the value of any collateral that it recovers.
Contact Andrew Weisblatt
Collecting unpaid debts are essential to the success of any business. Texas attorney Andrew Weisblatt is a skilled Houston B2B business collections attorney who understands how to effectively collect from businesses that may be reluctant or unable to pay their outstanding financial obligations. To schedule an appointment with Mr. Weisblatt, call our Houston office today at 713-666-1981.