Creditors’ Rights in Nevada

With the economy being the way it is, many people are having problems with finances and trouble keeping up with their debts. However, lenders are also creditors are also experiencing their own problems with finances. You must understand your rights as a creditor, and be aware of steps you can take to ensure that you are collecting on your claims. This might require the help of a qualified attorney. For instance if your debtors are not residing in the area any longer, you may need interstate depositions and discovery in Nevada in order to proceed. The best thing you can do is consult a qualified attorney, because the majority of the steps you will need to take will require one. Before going any further, let’s take a look at some of the rights that you have as a creditor in Nevada.

Legal Action

As a creditor, you the right to initiate legal action against a debtor if they have breached the terms of a loan agreement. A debtor may wish to claim that enforcing the terms of the contract is an undue burden, or is unfair, due to unrelated financial obligations or problems. However, you are well within your rights as a creditor to attempt to pursue a legal judgment against the debtor for the amount of the debt. That is of course, provided the terms of the contract were written in a manner that is consistent with the law. The best thing you can do in a case like this is seek the opinion of a qualified attorney.

Collateral

If there is any collateral attached to a loan, the creditor has the right to take possession and ownership of the collateral if the loan is in default. This would apply in cases such as an auto loan, or a home mortgage loan. In the event of a default, you have the right to pursue repossession or foreclosure through legal methods.

Deficiency Judgments

If you take possession of property used as collateral, you can sell the property in order to pay off the debt owed to you. Sometimes the money raised through the sale of the property is not enough to cover the outstanding balance of the debt. In a case like this, you may be entitled to take further legal action to obtain a judgment for additional money that is owed to you. This will depend on certain circumstances, and it is best to consult with a qualified attorney about your rights in a situation like this.

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