Who is a "debtor" and who is a "creditor"?

A "debtor" is a person who owes money on a loan or mortgage, or who uses credit cards.
A "creditor" is a person or business to which debts are owed. If you fail to pay your creditor or an error is made on your account, the creditor may hire a "debt collector" to collect the debt you owe.

A "debt collector" is a person who regularly collects debts owed to others, including attorneys who collect on a regular basis.
The Fair Debt Collection Practices Act, a federal law, and also state laws regulate debt collectors.
Debt collectors may contact you by mail (but not postcard), telephone, telegram, fax, or in person.
Debt collectors are allowed to contact you only at convenient times, such as between 8 a.m. to 9 p.m., unless you agree otherwise.

You can stop a debt collector from contacting you by notifying them in writing that you refuse to pay, or telling them that you want them to stop all further communication, or telling them the name of your attorney and that they must speak only with your attorney.
This does not make the debt go away if you actually owe it, and the debt collector or creditor may still sue you to collect the debt.

Debt collectors must tell you in writing, within five days of first contacting you: the amount owed, the name of the creditor, and what you can do if you do not believe you owe money.
Debt collectors can contact other people to find out where you live or work, or what your phone number is, but they cannot tell anyone other than you or your attorney that you owe money.

Debt collectors must not harass, oppress, or abuse you or anyone else they contact.
They may not use threats of violence, publish lists of people who have failed to pay their debts, use profane or obscene language, or repeatedly annoy someone by phone.
They must also not make any false statements to you, such as that they are attorneys or misrepresent the amount you owe.
They also cannot tell you that you will be arrested for failure to pay a debt, or that they will be taking any legal action which they do not intend to take.
They must not use false names or misrepresent the papers that they send to you as being legal or government documents when they are not.

You can sue a collector within one year from the date of the violation.
You may be able to recover damages, court costs, and attorney's fees.
You may also report the debt collector to your state Attorney General's office and the Federal Trade Commission.
For more information, log on to the Federal Trade Commission's Back to Top

Can a creditor repossess my property?

Creditors can take, or "repossess," a specific item of property for failure to pay a debt secured by that property without any formal legal action.
For example, if you fail to pay your car loan, the creditor can take your car and charge you for the cost of repossession.
Creditors can only repossess if accomplished without violence or an act likely to lead to violence.
You may verbally object, but it may cost you later if they repossess again.

After a creditor repossesses property to pay for the debt owed, the creditor may still be able to sue you for a deficiency judgment.
This means that if the creditor sells the property for less than the debt amount plus costs of repossession and sale, the creditor can sue you for the balance owed.

What is wage garnishment?

Wage garnishment requires employers to pay part of your paycheck (generally no more than 25%) to the sheriff, who forwards it to the creditor.
Creditors must get a court judgment against you, which you fail to pay, to garnish your wages

Employers cannot fire you or take any negative action against you because of wage garnishment.
However, garnishment may be embarrassing and the employer is not prohibited from forming a negative opinion about you, which may affect your ability to get raises or promotions in the future.


		YOUR RIGHTS AS A DEBTOR

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