A creditor lends money to a debtor, meaning the debtor is only borrowing money and should return it in full. Some arrangements even require the debtor to make interest payments to the creditor, particularly when substantial sums of money are involved. Regardless, the debtor should pay their debt. If you are a creditor, you have the right to collect the debt owed to you.

A creditor can demand payment

A creditor can contact the individual or entity that owes them money and demand payment. However, you should never harass the debtor or call them during unreasonable hours of the day unless the debtor or court order explicitly permits it. You must rightfully communicate your grievances with the debtor to avoid violating state and federal laws and to protect yourself from unnecessary legal action.

A creditor can garnish a debtor’s wages

Creditors can file a lawsuit to obtain a civil judgment against a debtor who defaults on their payments. It will allow you to collect money directly from the debtor’s paycheck. Still, you can only garnish wages from the debtor’s disposable income or the remaining amount after tax deductions. According to Georgia laws, the debtor’s disposable income should be more than 30 times the federal minimum wage. Otherwise, you cannot garnish their wages. Furthermore, you can only garnish 25% of the disposable income.

A creditor has the right to put a lien on the debtor’s property

After obtaining a civil judgment against a debtor, the court may attach a judgment lien to the debtor’s property once you win the judgment and the debtor cannot repay you. The court can attach a lien to personal property, like valuable art, cars or the debtor’s real estate. A judgment lien ensures the creditor will receive a specific amount of money when the debtor sells the property subject to the lien. It gives you the right to receive. If the debt is a secured debt, you may also have the right to repossess property that the debtor purchased with the money they borrowed from you. You do not need a court order to repossess a property bought with your money in Georgia.

You should not have the burden of going after someone you lent money to in good faith. As a creditor, you can pursue many legal avenues to get back what is yours.