What Are Creditors’ Rights?
When you hear the term creditors’ rights, what do you think about? What is the first thing that comes to mind? Some terminology can seem confusing or misleading if you are unfamiliar with it. In today’s blog post, we’re going take the time to explain what creditors’ rights are. The team here at Nikolaus & Hohenadel, LLP Attorneys at Law wants to help our audience and our clientele become more knowledgeable, and blog posts like this hopefully help achieve that.
Perhaps the best way to explain what creditors’ rights is would be to break things down. Any time you have any sort of debt, whether it be to a company, a bank, or a person, you are known as a debtor. You could owe money to the company, bank or person for many reasons. The other end of the equation would be the entity that the money is owed to. The entity that would have money owed to them must be paid to clear the debt from the debtor – this entity would be known as the creditor. They can make certain attempts to collect the debt from the debtor. The actions that a creditor can or cannot take in order to collect a debt are outlined in Creditors’ Rights.
Creditors’ rights are provisions that were made to help safeguard the ability of creditors to collect money that is owed to them. From one jurisdiction to another, these provisions can be similar or vastly different. A creditor may have the ability to place a lien on a property that is owned by a debtor. They may be able to place a garnishment on a debtor’s wages. Having an experienced attorney can make be the difference maker when dealing with the relationship between creditors and debtors. Creditors’ Rights also deals with the relationship between one creditor and another creditor. A debtor may owe debts to many different creditors and this can create complications in collecting on debts, such as understanding priority. Trying to make sense of this on your own as a creditor can be a headache and sometimes seem impossible to resolve, especially when things like bankruptcy come in to play.
Click here to get some more information on creditors’ rights.
While in many cases Nikolaus & Hohenadel, LLP Attorneys at Law represent debtors, we also work with creditors to ensure that they are represented with competent and capable attorneys that look out for them. The lawyers that work at our firm can help you avoid some of the common pitfalls that may arise when attempting to collect debts.
No matter the industry you or your company are in, the legal team here at Nikolaus & Hohenadel, LLP Attorneys at Law will ensure that you are treated fairly, compensated justly and treated with respect. With offices in Lancaster, Columbia, Elizabethtown, Strasburg and Quarryville, we are able to meet with clients from near and far and help them resolve their legal woes.
Contact us today to set up an appointment to see how we can best assist you today!