Can A Creditor Collect Interest On An Unpaid Claim?
A creditor can only collect interest on a debt if there is an agreement beforehand, whether it is a credit application, a sales or purchase contract. If a creditor receives a court judgment, most courts do allow post judgment interest in rates that vary from state to state. Court costs are also recoverable and added to the amount of the final judgment. For a business debt, how do you determine what parties are actually responsible for the debt? When the debtor is a business entity, it is critical that you identify the parties legally liable for the debt. Knowing all potential parties beyond the primary borrower is extremely important in collecting a debt when the primary obligor has no reachable nonexempt assets after obtaining a judgment. Identification of the responsible party or parties is first determined by the type of business entity of the debtor organization. Identifying the debtor as a proprietorship, partnership, limited partnership, limited liability partnership, corporation or limited liability company is the first step in finding out all the responsible parties on a debt.
Collections-Creditors Rights Sub-categories
