What action can a lender take if a debtor's account is past due?

A lender has the ability to file a judicial lien if a debtor's account is past due, which allows the lender to secure their interest in an asset owned by the debtor. This legal claim can be placed on various types of property, often real estate, which provides the lender with a level of security that they can potentially recoup their money if the debtor fails to pay back the owed amount.

When a judicial lien is filed, it essentially serves as a notice to other creditors that the lender has a right to the debtor's property until the debt is resolved, thereby establishing the lender's priority in case of further financial issues for the debtor.

This process is particularly important because it reflects the legal recourse available to lenders to protect their financial interests when faced with overdue accounts. It outlines a pathway for recovery that is enforceable through the courts, differentiating it from other options like claiming defamation, which is not relevant to issues of debt recovery, or bankruptcy applications and asset liquidation, which involve entirely different processes and implications for both debtor and lender.