A late payment is an amount of money a borrower sends to a lender or service provider that arrives after the date that the payment was due or after a grace period for the payment has passed.
Repossession law allows lenders to repossess vehicles if they were used to secure car loans. If the borrower misses one payment in Texas, the lender can send out the repo man. Repo agents in Texas need not be licensed, give the borrower notice, or get a court order before taking the vehicle.
Debt collection is the process of unpaid debts getting assigned to a collections agency. These agencies then take responsibility for collecting the debt on behalf of the original company; or, sometimes, the agency buys the debt and then collects it on behalf of itself.
Bankruptcy is a legal proceeding involving a person or business that is unable to repay their outstanding debts. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common.
