What is a delay in payments?

Delay in payments is a term used in New Hampshire creditors rights law to describe when a debtor (the person/entity who owes money) fails to make payments on time. When a debtor fails to make payments on time, creditors have a right to take legal action to collect the debt. This could include initiating a lawsuit, freezing the debtor’s bank account, or placing a lien on the debtor’s property. A delay in payments is also known as a default. When a debtor delays payments, the creditor may require the debtor to pay additional fees and/or interest on the debt that was not included in the original agreement. Fees for late payments are meant to cover the cost of the creditor’s time and other expenses associated with collections. Interest may also be charged to the debtor in an effort to recoup the money they are owed. The best way that a debtor can avoid a delay in payments is to stay on top of their payments by setting up a payment plan or budget. If the debtor falls behind, they should contact their creditor right away to discuss their situation and repayment options. This can help prevent interest, fees, or worse, legal action, from being taken against the debtor.

Related FAQs

What is a foreclosure action?
What is a non-dischargeability action?
What is a preference action?
What is the meaning of a “creditor”?
What is the meaning of “debtor”?
What is an adversary complaint?
What is a lien?
What is a real fraudulent transfer?
Can a lien be enforced against a debtor’s property?
What is the meaning of “creditors’ rights litigation”?

What is a delay in payments?

Related FAQs

Related Blog Posts