Default and Creditor Remedies

What Happens After Default?

A default occurs when the debtor fails to fulfill obligations under the agreement. The secured party may enforce its rights according to the contract and applicable law.

• Repossess collateral if permitted by law.
• Dispose of collateral through a commercially reasonable sale.
• Apply sale proceeds toward the outstanding debt.
• Return any surplus to the debtor after satisfying obligations.
• Seek a deficiency judgment if sale proceeds are insufficient, where allowed.