A secured transaction is when a creditor is given a right to or lien on the debtor's property to guarantee payment of the debt. A security interest arises when in exchange for a loan a borrower agrees, in a security agreement, that the lender (the secured party) may take specified collateral owned by the borrower if he or she should default on the loan. A secured creditor has priority over an unsecured creditor in debt collection efforts against the property securing the debt. A security interest also provides the secured party with the assurance that if the debtor should go bankrupt he or she may be able to recover the value of the loan by taking possession of the specified collateral instead of receiving only a portion of the borrowers property after it is divided among all creditors. A secured creditor can increase its rights against other creditors by perfecting its interest. This is accomplished by the public filing of a document identifying the creditor, debtor and secured property.

Collections-Creditors Rights Sub-categories

Chex Systems Collections Creditor Remedies in Bankruptcy Debt Collections Enforcement of Judgments Fair Credit Reporting Act

Fair Debt Collection Practices Act Identity Theft Judicial Remedies Mortgage Foreclosure Non-Judicial Remedies Types of Creditors