What is a secured creditor?

A secured creditor is a creditor who has rights to a debtor’s assets in the event of a default on a loan or other financial obligation. In North Carolina, if a debtor fails to make payments or otherwise defaults on a loan, the secured creditor has the right to take possession of the asset or property used to secure the loan. This is called a lien, and it serves to provide the creditor with a secure financial interest in the asset or property. It gives the creditor the right to receive payment from the debtor prior to other creditors in the event of a default on the loan or other obligation. Generally speaking, this applies to assets such as a house, a car, or other such property.

Related FAQs

What are the legal remedies for debtors?
What are the steps for filing for bankruptcy?
What is a debt collector's responsibility to provide information?
What are the risks associated with debt consolidation?
How does an unsecured creditor collect funds?
What is a repossession?
What is a levy on wages?
What is an offer in compromise?
What is a reaffirmation agreement?
What is a trustee

What is a secured creditor?

Related FAQs

Related Blog Posts