What Remedies Might Be Available Once A Creditor Commences A Court Proceeding?

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There are several remedies possible once a creditor has filed a lawsuit and prior to receiving a final judgment. Attachment is a court order permitting the creditor to seize the debtor's property. A creditor may utilize this remedy when it is likely that the debtor's assets will not be around when a judgment is obtained. Attachment is restricted to limited circumstances such as when a debtor is about to dispose of the property, when the claim is based on fraud or where a debtor cannot be served with the complaint. The laws that apply to attachment vary from state to state. A hearing is typically required and order of attachment directed to the sheriff. Replevin allows a creditor to recover possession of personal property when the creditor has title to the property or a right of possession. This remedy could apply where property is leased to a consumer who fails to make the monthly payments. Replevin will only be ordered by the court under special circumstances such as when damage or loss of the property is likely. Receivership involves the appointing of a third party by a court to dispose of the debtor's property in order to satisfy the debt. If the remedies described above are not successful, a court judgment must be obtained. This may be obtained after a jury trial or by default if the debtor does not contest the case. If a judgment is ordered, the judgment must then be enforced.

Other Collections-Creditors Rights FAQs

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