If a debtor defaults on a credit contract,the creditor may:

Question

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All three options are possible actions that a creditor can take if a debtor defaults on a credit contract. The creditor can impose a late charge to incentivize timely payments. If the debt remains unpaid, the creditor can take legal action and obtain a court judgment to garnish the debtor's wages. In addition, the creditor may choose to declare the entire balance of the debt immediately due and sue the debtor for the full amount owed. Therefore, choice (D) is the best answer.

If a Debtor Defaults on a Credit Contract,the Creditor May