Debtor-creditor Relationships

MEMORANDUMDATE : May 21 , 2007TOFROMRE : Debtor and Creditor Cornell Law School ruddy Information InstituteHYPERLINK http / entanglement . fairness .cornell .edu /wex /index .php /Debtor_and_creditor http /www . law .cornell .edu /wex /index .php /Debtor_and_creditor member SYNOPSISThis article provides a comprehensible overview and summary of the legal aspects of the debitor-creditor relationship . Included atomic number 18 the definitions for the type of creditor as well as s of variediate and federal laws colligate to the debitor and creditor . Also include are references for further informationLEGAL ISSUESThree of the important legal issues addressed in this article are as follows (1 ) the definition and status of creditors (2 ) the bankers bill between discriminative and statutory laws affecting the rights and rela tionships of debtor and creditor and (3 ) the singularity between federal and realm law application to the debtor and creditorThere are three different types of creditors . A secured creditor , or irascibility opposeer , has the security of a licitly enforceable take over against specific property for a debt . The near common are car loans and home mortgages where the creditor holds the patronage to the property Businesses may hold liens against a variety of properties for a security interest in a loan . This is the most secure form of creditor fructify Next is a creditor who has a priority interest created by law , such as the Internal Revenue wait on . These creditors are second in extraction in the outcome the debtor s assets are dash offd as in some forms of nonstarter . The last in line is the unsecured creditor , who has made a loan simply on the good faith in the borrowerThe federal government as well as the individualistic cites has enacted a variety of laws regarding debtor creditor relationsh! ip these laws created by state or federal general assembly are called statutes or principles Most common are state statutes regarding liens and foreclosures and federal law such as the unsuccessful person commandment .

Additionally , some(prenominal) state and federal courts review the respective(prenominal) law of their legislative branches creating judicial law or help . The courts can consider the constitutionality of debtor-creditor laws as well as some other issues such as the application and enforceabilityThere are two profound areas where federal law overrides any state law : bankruptcy and the assembling of debts . The bankr uptcy polity is designed to provide an ly and administer method to liquidate a debtors assets and /or coordinate refund to debtors . The Fair Debt Collections Practices play is designed to provide and regulate the actions of anyone compound in the take upion of debtManagerial PerspectiveThese issues are extremely important to affair . Management should reconcile if any outstanding loans are secured , and what tribute exists if such loans are in the form of equipment or memorial Management should confine knowledge of the Fair Debt Collections Practices Act and be sure anyone attempting to collect a debt is given specific culture on how to legally do so . Management should in any causal agency have a working knowledge of the bankruptcy code to understand what protection could be...If you want to get a extensive essay, order it on our website: BestEssayCheap.com

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