CREDITORS’ RIGHTS

Creditors’ rights are a broad category of legal rights often divided between secured and unsecured creditors.  Debts may be secured by liens on real or personal property.  Secured creditors have lien rights in the property that typically allow for the property to be sold, under legal process, to satisfy the debt.  Unsecured creditors do not have lien rights in real or personal property.  An unsecured creditor obtains a money judgment against the defendant and utilizes a process known as discovery in aid of execution to identify nonexempt assets belonging to the debtor that may be seized or sold, via legal process, to satisfy the judgment debt.