Creditor protections

Creditor protections are legal rules and mechanisms that help ensure creditors—those owed money—can recover what they're owed while also preventing unfair treatment of borrowers. These protections may include laws that restrict how and when creditors can pursue debts, procedures for settling disputes, and rules that prevent creditors from seizing all a debtor's assets immediately. They balance the interests of lenders and borrowers, ensuring fair collection efforts while safeguarding debtors from excessive or unjust collection practices. Overall, creditor protections promote a fair and stable financial system by clarifying rights and limiting abuses.