If a debtor defaults on a credit contract, the creditor may:
A) impose a late charge.
B) garnish wages if there has been a court proceeding to enforce collection of a judgment.
C) declare the entire balance of the debt immediately due and may sue on the debt.
D) All of these.
E) Both impose a late charge and declare the entire balance of the debt immediately due and sue on the debt.

Question

If a debtor defaults on a credit contract, the creditor may:
A) impose a late charge.
B) garnish wages if there has been a court proceeding to enforce collection of a judgment.
C) declare the entire balance of the debt immediately due and may sue on the debt.
D) All of these.
E) Both  impose a late charge and  declare the entire balance of the debt immediately due and sue on the debt.

Quizplus · Accepted Answer

All of these actions (imposing a late charge, garnishing wages following a court proceeding, and declaring the entire balance due immediately and suing on the debt) are potential steps a creditor may take if a debtor defaults on a credit contract.

If a Debtor Defaults on a Credit Contract, the Creditor