Debtor & Creditor Relationships (Suretyship) 1 of 1 (50)

Question 1

Creditor Rights

Answer 1

Alternatives for debtors other than bankruptcy, include:

• Agreeing with creditors to pay a proportionate reduced amount in settlement in a composition with creditors agreement.
• Voluntarily transferring assets to creditors in an assignment for the benefit of creditors.
• Being required to surrender assets to a creditor as a result of a writ of attachment.
• A creditor’s seizure of the debtor’s wages or balances in financial institutions through garnishment.
• Creditors having claims to the debtor’s property through liens, which may be consensual, such as mortgages, or nonconsensual, such as mechanics’ liens.
• Limiting liability due to losses resulting from the fraudulent use of the debtor’s credit cards as a result of the Credit Card Fraud Act.
• Exempting a certain portion of the equity in the debtor’s residence by applying the homestead exemption.
• Obtaining protection from inappropriate tactics of debt collectors as a result of the Fair Debt Collection Practices Act.