Creditors need to consult with an attorney for advice on the legal steps they may take to try to collect a debt, while those who owe money may also need legal assistance in dealing with creditor actions.
Creditors and debtors have a contractual relationship. The debtor agrees to repay money that the creditor lends, based on the terms of their specific contract. The contract may take the form of an agreement that a debtor signs when he applies for a credit card. Mortgage loan documents are also a form of a contract that specify the terms of repayment and that dictate the cost of borrowing and the consequences of default.