What are the legal rights and obligations of debtors and creditors?

In California, a debtor is any person or business entity who has a contractual obligation to pay a creditor. A creditor is any entity that is owed a debt, such as a bank or an individual. The legal rights and obligations of debtors and creditors are determined by the contract between them or by the applicable state or federal laws. In general, debtors must make timely payments to their creditors as specified in their contracts or applicable law. Debtors are also expected to provide accurate repayment information to their creditors to help them track and manage payments owed. Creditors, on the other hand, have the legal right to pursue collection of any unpaid debts from debtors, as well as to use any legal measures necessary to enforce their rights to payment. Creditors are required to provide debtors with timely communication about payments due, any changes to the contract, or any other updates about the debt owed. In addition, creditors must adhere to the Fair Debt Collection Practices Act, which has specific rules about what creditors can and cannot do when attempting to collect payment. This includes not harassing the debtor, not misrepresenting the amount of debt owed, and not using unfair or deceptive collection tactics. Finally, debtors and creditors have the right to utilize dispute resolution or other legal mechanisms to resolve any disputes or disagreements between them.

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