For the most part, debtor-creditor law is concerned
with when a debtor fails to uphold the conditions of a creditor’s services.
Whether it be an extension of funds, land, goods, a line of credit, or some
other form of transaction between debtor and creditor, the former must pay the
latter back in full, plus interest. In fact, debtor-creditor law is
applicable to pretty much any financial obligation that is incumbent upon the
debtor to pay to another party.
Even when the debtor has not received a specific product
or service from the person(s) or organization(s) to whom he or she is indebted,
the duty to provide compensation still exists. For example, in the event the
debtor owes a party money for damages, similar principles apply as with debtor
and creditor law.
Then again, it may be the
debtor who applies debtor-creditor law to the creditor in terms of a
broken agreement or unfair collection practices. Theoretically, legal disputes
between debtor and creditor in which the debtor feels wronged by the
creditor are possible. Such a situation may come to pass in a small claims
court, for example. The debtor pays for a certain service to be performed, such
as hiring a contractor to accomplish certain core goals in a building scheme,
only to find the contractor has not fulfilled his end of terms as specified and files suit accordingly. Clearly,
then, debtor-creditor law is not a one-way street.
Debtor and
creditor law exists on two complementary yet separate planes. As noted
elsewhere, when debtor-creditor law is extended to bankruptcy cases, these
legal proceedings are judged by Federal standards in
courts
