If You Have a Problem with Your Creditor, the Best

question 62

Multiple Choice

If you have a problem with your creditor, the best solution is to:

• A) file a lawsuit against the creditor.
• B) solve your problem directly with the creditor.
• C) complain to the Federal Reserve System.
• D) complain to the Board of Governors.
• E) wait for creditor action.

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Definitions:

Judgment Debt

The amount of money that a court has ordered one party to pay another party as a result of legal action.

Exempt Property

Assets that are protected by law from being seized by creditors or during bankruptcy proceedings.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to make payments.

Creditor

An individual or organization to whom money is owed by a debtor.