Creditors' rights law

Creditors' rights law refers to the legal protections and remedies available to creditors—those owed money—when borrowers or debtors default on payments. It establishes how creditors can pursue collection, such as by filing lawsuits, seizing assets, or securing collateral. The law also sets guidelines to ensure debt collection is fair, preventing harassment or unfair practices. Essentially, it balances the rights of creditors to recover owed funds with the debtor’s protections, ensuring that debt recovery processes are conducted legally and ethically.