How can creditors protect themselves from debtors who fail to pay?

In New York, creditors have several rights that they can use to protect themselves from debtors who fail to pay back their debts. The first right is the right to sue the debtor in civil court. By filing a lawsuit, the creditor can obtain a court order for the debtor to either repay the debts or have assets seized to pay back the debts. This court order gives the creditor the authority to take legal action against the debtor, including garnishing the debtor’s wages or levying financial accounts. Another right is the right to file a lien against the debtor’s property. A lien is a legal claim that gives the creditor the right to keep or sell some of the debtor’s property if the debt is not repaid. Liens help to ensure that the debtor cannot sell or transfer the property until the debt is settled. Finally, creditors also have the right to use collection agencies to pursue delinquent debts. Collection agencies are usually employed when a debtor cannot be located or is unresponsive. The agency will contact the debtor and try to work out a payment plan or collection arrangement. Creditors can use these rights to protect themselves from debtors who fail to pay, helping to ensure that they receive the money they are owed. However, it is important to be aware of the laws surrounding creditor rights in order to make sure that these rights are respected.

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How can creditors protect themselves from debtors who fail to pay?

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