Creditors have the right to collect legal debts owed to them. South Carolina law requires that secured creditors give written notice to the debtor before taking action against the debtor's property that secures the creditor’s debt. After notice is given, the creditor can take the property through self-help measures or legal process. The creditor may take the property through self-help only if it has a lien on that property.

Lien creditors have an interest in a particular piece of property. Creditors who hold mortgages on real property or liens on titles to vehicles are examples of the most common types of lien holder. The property can be used to satisfy the debt owed to the lien-creditor if the debtor fails to pay pursuant to an agreement.

Creditors can use judicial and statutory processes to have debts satisfied. Creditors may do this only after obtaining a judgment order of the court. Attachment is a limited statutory remedy whereby a creditor has personal property of a debtor seized to satisfy a debt. Garnishment allows a creditor to collect part of a debt (for example wages) to satisfy the obligation. Garnishment is allowed in South Carolina only for debts owed the government and child support. Replevin allows a creditor to seize goods in which he has a property interest to satisfy the debt. Receivership involves the appointing of a third party by a court to dispose of the debtor's property to satisfy a debt.

Unsecured creditors can create a lien on a debtor's property only through judicial process. If the debtor fails to pay, the creditor can sue for the money owed. If the creditor obtains a judgment, he then has a judicial lien on the debtor’s property. Once a lien has been created, the creditor can attempt to execute against the debtor's property by having the court sell the property and turn the sale proceeds over to the creditor. Such sales of property to satisfy a judgment are governed by state law. Federal and state statutes and the federal Consumer Credit Protection Act also limit the type of property that can be used to satisfy a debt in this way.

If you have further questions concerning creditors’ rights, please do not hesitate to contact us.

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