Creditor and debtor law includes the rights and obligations of (1) creditors who extend credit and make loans to consumers and businesses and (2) consumers and businesses who seek credit and loans for their personal and business finances. Creditor/debtor law consists primarily of state and federal statutes.
In South Carolina, creditor and debtor law is governed by both state statutes and federal laws that outline the rights and obligations of creditors and debtors. Creditors are individuals or entities that extend credit or make loans, while debtors are consumers or businesses that seek credit or loans for personal or business purposes. State laws in South Carolina include provisions on the collection of debts, the process of repossession, and the enforcement of judgments. These laws dictate how creditors can pursue debt repayment and what actions are considered lawful in the event of default. Additionally, federal laws such as the Fair Debt Collection Practices Act (FDCPA) provide protections to debtors from abusive debt collection practices and establish legal standards for the conduct of debt collectors. Bankruptcy proceedings, which can offer debt relief for overwhelmed debtors, are governed by federal bankruptcy codes but can also be influenced by state-specific exemptions and procedures.