(3) a credit contract without credit (for example. B a direct loan) that the lender does not make in agreements with a supplier, knowing that the loan must be used to finance a transaction between the debtor and the supplier. A company participates in a debt transaction to seek financing for short-term operational activities or long-term expansion plans. An individual can sign a loan contract to buy a house or pay for university. 1. a limited-use credit contract for the financing of a transaction between the debtor and a supplier in which there is no agreement between the creditor and the supplier (for example. B when a loan is paid directly by the lender to a trader intended to supply the debtor); A Dictionary of Law „A debt contract is not the same as a debt consolidation loan or informal payment agreements with your creditors. A debt contract is for people with lower incomes who cannot pay what they owe. But there are consequences.
There are many types of debts that can lead to the emergence of debtor and creditor relationships. Some of these areas are: anthropologist David Graeber suggests in Debt: The First 5000 Years that trade began with some form of credit, namely the promise to pay later for goods already remitted. For this reason, it can be said that debtors and creditors existed before the introduction of the currency.  The FDCPA is a consumer protection law that protects debtors. This act describes when account collectors can call debtors, where they can call them and how often they can call them. It also focuses on elements relating to the debtor`s privacy and other rights. However, this law only applies to third-party deposit offices, such as the . B, companies that attempt to recover debts on behalf of other companies or individuals.
When a debtor does not pay a debt, creditors have some recourse to recover it. If the debt is secured by collateral such as mortgages and auto loans secured by houses or cars, the creditor may attempt to recover the guarantees. In other cases, the creditor may take the debtor to court in order to have the debtor`s wages filled or to obtain another type of repayment order.