If you are a creditor and you are unable to recover loans from your borrowers then you should consider working with a debt collection service. However, you need to understand the different types of debt collection services available out there, with the main ones being services of a debt collection attorney and of a debt collection company. While they both may sound the same, there is a huge difference between the way they operate.
Understanding Debt Settlement
First and the foremost, it is imperative to understand how debt settlement works. Whether you hire an attorney or a company, they will work on your behalf to collect the debts from the borrowers by either cutting deals or filing suits in the court.
Chasing after your customers who haven’t paid you is stressful. Not only does it affect your cash flow, but it also wastes time that you should be spending on more important tasks. This is why hiring a collection attorney can be a wise option. You’ll find that with their help, the burden of following up over and over again will be lifted.
Ways to Collect Debt
Debt collection agencies can help get payment for credit card loans, late payments, and others. Collecting payment is a process, and there are various techniques on doing it. Most of the time, collection lawyers will call the customer. If it doesn’t work, a notification letter will be sent. If the customer is having a hard time paying the debt, a settlement may be discussed.
When served a lawsuit, you have about five days to respond. Failure to do so will When a collection lawsuit is filed against you, consider hiring a collection lawyer right away. Thinking of representing yourself in court or taking the lawsuit for granted will not do you any good. If the court determines your lack of response, it can make a judgment without proceedings, and that judgment will almost always not favor you. Here are some tips that can help you when hiring a collection attorney.
lead to a court judgment against you. Given this, you must take immediate action and look for a lawyer who can help you deal with the problem. You need someone who understands the law governing debts and knows how to respond quickly to the summons attached to the lawsuit.
If you are facing regular contact from a debt collection service, you might feel overwhelmed and unsure of your legal rights and obligations. In this type of a situation, having an attorney to represent you can help to protect your rights under the law. An attorney can provide you with information and may be able to represent you if you try to settle your debts through personal bankruptcy or other means.
Unwanted Debt Collector Contact
A collection attorney may be able to help you if you are receiving unwanted contact from a debt collector. Collection agencies must abide by the Fair Debt Collection Practices Act (FDCPA), which is enforced by the Federal Trade Commission. This law stipulates that debt collectors may not use abusive or deceptive techniques to collect money from you.
For some, eliminating or repaying debt can seem like a daunting task; for others, it is a necessary step to clearing bad credit. Though the word is often times treated as taboo, bankruptcy should be neither feared nor brushed off as an option in order to accomplish this seemingly heavy burden. Consumers and businesses alike can file under the protection of the federal government. Typically, they can choose between two different processes: liquidation and reorganization. To liquidate is to have some of your property pay back a portion of the debt, whereas reorganization allows the debtor to keep their property but requires monthly payments to the creditors.
Keep in mind, however, that not all who file for bankruptcy qualify and not all debts can be forgiven. A reputable collection attorney may be able to help you find the most viable solution.
There are various types of attorneys, some of which practice solely in specific area of the law. Those people who find that they need help with bankruptcy, business law, contracts, real estate and other such situations might find themselves in need of an attorney to help them settle their debt assist them with collecting through debt collection service. Having a legal professional on your side can certainly improve your chances to settle debt.
Case Evaluation and Strategy Development
Whether you’re the creditor who’s looking to collect on a debt or the debtor who is looking for a way out of debt, debt attorneys can assist you. Perhaps the most valuable service that such attorneys provided is case evaluation and strategy development. The most difficult part of either collecting on a debt or getting out of it is knowing where to begin.