Key Ways Attorneys Can Help With Debt Collection Issues

Debt collection companies can be a valuable partner for businesses to turn to when customers are not making timely payments. Credit card companies, retail businesses and health care offices all rely on collections companies to help get delinquent accounts current. Sometimes, for large debts and severely late accounts, these companies need to take the matters to the next level. An experienced attorney or law firm has the skill and training to assist organizations and help to resolve debt issues.

File a Lawsuit

In some situations, a company may wish to sue a debtor for his or her failure to stay current with an account (or even pay anything at all). Before doing this, the company should consult an attorney that specializes in debt collections. A lawyer can evaluate the case to determine whether it makes sense for the company to take legal action. Financially, it may be more advantageous for the company to continue to pursue collections efforts. Lawyers can also represent the other side in a collections matter. Debtors can also bring a complaint to court that a creditor has used illegal or unethical methods to collect a debt. These may include harassment or adding unreasonable fees to the debt. Lawyers can represent the customer and ensure that his or her rights are upheld.

Collecting the Debt for the Company

When a collections company has been unable to reach the debtor, the creditor can escalate the account further to an attorney. Lawyers often get involved when the account is several months past due and when the debtor owes $1,000 or more. Delinquent customers tend to respond more readily to law firms and lawyers than to a third-party collections agency.

Easing the Debtor’s Burden

With debt collection matters, a lawyer, like a bankruptcy lawyer from Law Offices of Ronald I. Chorches, can also advise a debtor when he or she should consider filing for bankruptcy. If this course isn’t in the person’s best interest, the attorney can also help the debtor negotiate the debt. The debtor, with the lawyer’s guidance, might be able to get a lower interest rate, a lower monthly payment or an extended term. The attorney might even be able to get the creditor to forgive some or all of the debt.

It’s clear to see why companies and individuals alike work with experienced attorneys for debt collection issues. If you believe an attorney would benefit you and your financial needs and interests, schedule a consultation with one today.