What is a “deficiency claim”?

A “deficiency claim” is a legal claim brought by a creditor when they have not been fully repaid the debt they are owed. It is part of the Creditors Rights Law in New Hampshire. Under Creditors Rights Law in New Hampshire, if a borrower defaults on a loan, the creditor has the right to recover what is owed to them in full. This may include taking possession of assets, suing the borrower, and pursuing collections. If the proceeds from these efforts are not enough to cover the full amount of the debt, the creditor then has the right to file a deficiency claim. When a creditor makes a deficiency claim, they are suing the borrower for the remaining difference between the amount they were originally owed and what they have been able to collect. In New Hampshire, a deficiency claim can also include attorney fees, court costs, and other items that were part of the original loan agreement. A deficiency claim is an important tool that creditors have in order to protect their rights. It allows them to recoup money that was not collected through other efforts, such as repossession of assets or collections. Although it can be costly for a borrower, it is a necessary part of Creditors Rights Law in New Hampshire.

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What is a “deficiency claim”?

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