The term "creditors' rights" refers to the legal and procedural options available to a business when its customer fails to pay his or her debts. The business is the "creditor" to which the debt is owed. The customer who owes the debt is the "debtor."
The creditor has several available remedies to protect its ability to collect the money owed by the debtor. Creditors' rights also refers to the rights of creditors against one another when the debtor has limited assets to satisfy all of their debts or files a petition for bankruptcy in federal court.
In the State of Texas, creditors' right can include the ability to put a lien on a debtor's non-homestead property, to seize the property and force its sale, and to have certain purchases or gifts set aside as fraudulent conveyances.
Whether certain creditors' rights are available depends on a variety of factors including the reason the debt is owed and the terms of any writing memorializing the debt.
Attorneys for Creditors' Rights in Dallas, TX
The attorneys at Littlefield Law Firm are focused on debtors' rights. We can advise you what rights creditors may have in your situation and the various options available to a creditor to collect on a debt. We attend continuing legal education (CLE) seminars on the recent changes in creditors' rights law.
Contact us to find out more about the rights and remedies available to the creditor interested in collecting your debt. Several laws in the State of Texas and at the federal level are intended to protect a creditor's right to payment for an outstanding debt.
Call (972) 812-0900 today.
Defenses to Creditor Persistence
The possible defenses to creditors persistence include:
- an action for debt collection harassment;
- an action for a violation of the Federal Truth in Lending Act (Ch. 12, supra);
- an action for a violation of the Texas Finance Code; and
- an action for a violation of the Texas Deceptive Trade Practices-Consumer Protection Act.
This article was last updated on Friday, February 19, 2018.