What are the different types of debt collection actions?

The different types of debt collection actions in California are determined by creditors’ rights law. Bankruptcy laws protect debtors from excessive collections. One type of debt collection action is a judgment lien. This is a court-ordered lien in which the creditor has the right to any of the assets of the debtor until the debt is paid. It can be placed on real estate, businesses, or other assets. Second, a creditor may file a lawsuit against the debtor. This is a way to collect the debt if the debtor has assets which can be used to pay the debt. If the debt is found to be valid, the judge will order the debtor to pay the debt. Third, creditors can repossess the items they gave to the debtor as collateral. These items can include cars, boats, furniture, and other items. Fourth, creditors may also garnish wages. This is a court-ordered deduction from the debtor’s paycheck to pay the debt. The creditor must first file a lawsuit against the debtor and get a court order to do so. Finally, creditors can also levy bank accounts. This allows the creditor to take money from the debtor’s checking or savings accounts to pay the debt. Again, the creditor must first file a lawsuit and obtain a court order to do this. These are the different types of debt collection actions in California. Creditors’ rights laws vary from state to state, so it’s important to research and understand the rules in your area.

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What are the different types of debt collection actions?

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