{"id":357987,"date":"2016-04-04T10:46:18","date_gmt":"2016-04-04T15:46:18","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/hirealawyer\/choosing-the-right-lawyer\/debtor-creditor.html"},"modified":"2024-04-05T11:49:17","modified_gmt":"2024-04-05T16:49:17","slug":"debtor-creditor","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/debtor-creditor.html","title":{"rendered":"What Do Debtor-Creditor Attorneys Do?"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">What Do Debtor-Creditor Attorneys Do?<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/susan-buckner-j-d\/\">Susan Buckner, J.D.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/melissa-bender-esq\/\">Melissa Bender, Esq.<\/a>\n                | Last updated\n        <time>\n                            April 05, 2024\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n    <div class=\"fl-callout-text article-blockquote\">\n        <div role=\"article\" data-tabster=\"{&quot;groupper&quot;:{&quot;tabbability&quot;:2},&quot;focusable&quot;:{}}\" data-content=\"ai-message\" data-testid=\"ai-message\" aria-labelledby=\"3moAXZspo2mC6yGmiYVCu-author 3moAXZspo2mC6yGmiYVCu-content-0\">\n<div>\n<div id=\"3moAXZspo2mC6yGmiYVCu-content-0\">\n<p>Debtor\u2011creditor law governs the financial relationship between those who owe money and those who are owed, covering issues like debt collection practices, credit rights, and secured debts. When debt problems escalate or legal action is threatened, a debtor\u2011creditor attorney can advise clients on their rights and options.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"KGj39gTNno6A8bZjEwwbk-user-message\" class=\"group\/user-message space-y-1\" role=\"article\" data-tabster=\"{&quot;groupper&quot;:{&quot;tabbability&quot;:2},&quot;focusable&quot;:{}}\" aria-labelledby=\"KGj39gTNno6A8bZjEwwbk-user-message\">\n<div><\/div>\n<\/div>\n\n    <\/div>\n\n\n\n<p>Debtor-creditor laws help consumers and businesses:<\/p>\n<ul>\n<li>Navigate disputes<\/li>\n<li>Avoid illegal collection tactics<\/li>\n<li>Manage repayment without immediately resorting to bankruptcy<\/li>\n<\/ul>\n<p><a href=\"https:\/\/lawyers.findlaw.com\/debtor-creditor\/\" target=\"_blank\" rel=\"noopener\">Debtor-creditor lawyers<\/a> help debtor clients stay out of bankruptcy court. They also help business owners handle\u00a0repayment issues before they escalate into lawsuits.<\/p>\n<p>An attorney practicing debtor-creditor law may specialize in <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/creditors-rights-and-collection-options.html\">small business<\/a> or consumer issues, helping clients manage debt. They advise on several issues, including:<\/p>\n<ul>\n<li>The proper procedures for extending credit<\/li>\n<li>Consumers&#8217; rights regarding debt collection<\/li>\n<li>Forms of credit satisfaction<\/li>\n<\/ul>\n<p>Keep reading to learn more about debtor-creditor law and how attorneys in this field support their clients. Bankruptcy is a separate practice area. <span style=\"margin: 0px;padding: 0px\">To file for bankruptcy, you&#8217;ll want to\u00a0<a href=\"https:\/\/www.findlaw.com\/bankruptcy\/before-you-file\/attorney-intake-questionnaire-hiring-a-bankruptcy-attorney.html\" target=\"_blank\" rel=\"noopener\">use a bankruptcy attorney<\/a>.\u00a0<\/span><\/p>\n<h2>Debtor-Creditor Law: Consumer<\/h2>\n<p>Some consumer debt issues may not need legal representation.\u00a0<a href=\"https:\/\/www.findlaw.com\/litigation\/going-to-court\/how-do-i-file-a-small-claims-court-lawsuit.html\">Small claims court<\/a>\u00a0handles minor disputes. If you have trouble with debt collectors over a small bill, small claims courts are a good place to settle the matter. Judges and mediators can help resolve these issues by arranging a payment plan with the consent of the original creditor.<\/p>\n<p>More serious problems may need legal services. Suppose a debt collection agency notifies you that they are filing a claim against you for failure to pay your auto loan. If you default on a debt collection lawsuit, meaning you don&#8217;t file the correct paperwork, the collection agency can <a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/how-to-get-a-repossessed-car-back.html\">repossess your car<\/a>.<\/p>\n<p>The\u00a0<a href=\"https:\/\/www.findlaw.com\/consumer\/credit-banking-finance\/equal-credit-opportunity-for-consumers.html\">Equal Credit Opportunity Act<\/a>\u00a0(ECOA) is a federal law that ensures that all consumers have equal ability to apply for credit. Agencies extending credit can&#8217;t turn you down because of your race, religion, gender, or other protected characteristic. If you believe this has happened, contact an attorney at once.<\/p>\n<p>Attorneys can help with <a href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/your-rights-under-the-credit-card-act.html\">credit card deb<\/a>t by contacting your lender on your behalf to arrange repayment plans.<\/p>\n<h2>Debtor-Creditor Law: Business<\/h2>\n<p>Business owners must follow the\u00a0<a href=\"https:\/\/www.ftc.gov\/legal-library\/browse\/rules\/fair-debt-collection-practices-act-text\" target=\"_blank\" rel=\"noopener\">Fair Debt Collection Practices Act<\/a>\u00a0(FDCPA). The FDCPA is a federal law, but most states have similar laws that resemble the FDCPA. These laws apply to any business that extends or accepts credit. The laws regulate how businesses and debt collectors may try to collect on past-due accounts before starting legal action. The FDCPA and state laws:<\/p>\n<ul>\n<li>Define how businesses can make phone calls, send letters or emails, or otherwise contact the debtor<\/li>\n<li>Limit contact to third parties when trying to collect on a debt<\/li>\n<li>Prevent creditors from <a href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/how-to-stop-debt-collector-harassment.html\">harassing debtors<\/a>, making false statements, or using unfair practices to collect a debt<\/li>\n<\/ul>\n<p>Debt collectors can&#8217;t <a href=\"https:\/\/www.findlaw.com\/employment\/wages-and-benefits\/garnishment-of-wages.html\">garnish wages<\/a> until after they get a judgment, collect more than the amount of the debt, or tell debtors they will go to jail. Creditors can&#8217;t seize debtors&#8217; property or say they will do so unless they actually intend to file a creditor&#8217;s lawsuit.<\/p>\n<h2>Get Legal Advice From a Debtor-Creditor Attorney<\/h2>\n<p>You need legal help if you have issues with debt collections or other debtor-creditor matters. A lawyer in your area can explain your options and help plan a clear path forward to negotiate with creditors and prevent further legal or financial consequences.<\/p>\n<p>Because your state&#8217;s laws are relevant, your attorney should be licensed in your state. FindLaw&#8217;s directory of <a href=\"https:\/\/lawyers.findlaw.com\/debtor-creditor\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">debtor-creditor lawyers<\/a> can get you started. Enter your city or ZIP code for a list of qualified legal advisors. Many law offices offer free case evaluations.<\/p>\n<h2>Debtor-Creditor Terms To Know<\/h2>\n<p>The following terms are often used when discussing debtor-creditor law.\u00a0<\/p>\n<ul>\n<li><b>Contingent claim:<\/b>\u00a0A claim the debtor owes in certain circumstances. A &#8220;contingency&#8221; is something that must happen before the debtor must pay the debt.<\/li>\n<li><b>Creditor:<\/b>\u00a0A person who lends money or provides goods or services. The debtor owes money to the creditor.<\/li>\n<li><b>Secured debt:<\/b>\u00a0Debt backed by a mortgage or other collateral. The creditor can collect on the secured property if the debtor defaults. Examples include home mortgages, auto loans, and tax liens.<\/li>\n<\/ul>\n<p>For more legal definitions, see FindLaw&#8217;s <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/glossary-bankruptcy-terms.html\">Glossary of Common Bankruptcy Terms<\/a>.<\/p>\n<h2>Related Practice Areas<\/h2>\n<p>Debtor-creditor law often overlaps with the following legal areas:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/bankruptcy-law.html\">Bankruptcy Law<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/consumer-law.html\">Consumer Law<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/business-and-commercial-law.html\">Business and Commercial Law<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/taxation-law.html\">Taxation Law<\/a><\/li>\n<\/ul>\n\n\n<div class=\"was-this-helpful\">\n    <div\n  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       <div class=\"was-this-helpful__feedback was-this-helpful__feedback--positive\">\n                <fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this helpful?<\/legend>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--understandable\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Easy to understand\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--understandable\"\n                        >Easy to 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role=\"status\">\n                        <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--missing-info\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Missing Information\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--missing-info\"\n                        >Missing the information I need<\/label>\n                    <\/div>\n                    <div 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name=\"negative-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--negative-other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__form-buttons-container\">\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--positive at-feedback-submit fl-button secondary\"\n                    type=\"submit\"\n                >\n                    <span class=\"fl-button-content\">Submit<\/span>\n                    <i\n                        class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n            <\/div>\n        <\/form>\n    <\/div>\n    <div class=\"was-this-helpful__thank-you-message\" role=\"status\">\n        <i class=\"was-this-helpful__thank-you-message-icon fa fa-check\"><\/i>\n        <p class=\"was-this-helpful__thank-you-message-text\" aria-live=\"polite\"><\/p>\n    <\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"fl-section-sidebar\"><div class=\"fl-editors-summary\" data-testid=\"fl-editors-summary\">\n    \n    <div class=\"fl-editors-summary-content\" data-testid=\"fl-editors-summary-content\">\n                    <h2>Can I Solve This on My Own or Do I Need an Attorney?<\/h2>\n                <div class=\"fl-editors-summary-content-main\" data-testid=\"fl-editors-summary-content-main\">\n            \n        <\/div>\n        <ul class=\"fl-list-style-none\">\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    Consumer legal issues typically need an attorney\u2019s support\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    A lawyer is crucial if a debt collector threatens legal action, repossession, or wage garnishment\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    You may not need legal help for small, straightforward disputes that can be handled in small claims court\n\n                <\/li>\n                    <\/ul>\n                    <div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n                <div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n<div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n<p>Most legal situations can benefit from an attorney\u2019s guidance. 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