Debt collection can be a messy situation no matter what party you are in the process. If you are the one owed money, it can be frustrating and time-consuming as you make attempt after attempt to recover the debt you are entitled to.
If you are the one who owes the debt, you may found yourself hounded by the person you owe the debt to, a collection agency acting on their behalf, or their legal representation. Either way, to seek a resolution to the matter, you may want to consider hiring a debt collection lawyer. Below are the top 4 reasons why you may need a lawyer for debt collection whether you are a creditor or a debtor.
As a manager or small business owner, you can hire a lawyer to help you collect a debt to avoid running the risk of having a court of law declare your debt null and void. An experienced lawyer understands all the guidelines, laws, and procedures that should be followed by a debt collector.
Most collection agencies are limited to writing letters and making calls but lawyers can use effective debt collection techniques when dealing with delinquent accounts. For example, a letter from a collection agency may just end up in the trash unread. However, once a debtor is contacted by a lawyer, the chances of him/her being more responsive and taking the matter seriously are higher. A lawyer can also trace hidden assets by performing document searches to discover a debtor’s assets and bank accounts that went previously undisclosed.
2. Can advise on ways to deal with creditors
Most people in debt often complain about receiving numerous calls from creditors. This may distract you from your life and its many obligations. However, working with a lawyer ensures that you learn some of the ways you can stop these constant phone calls from your creditors.
For instance, a debt settlement attorney can guide you on how to file for bankruptcy or how to write a letter to your creditors requesting them to stop contacting you. This includes attending your home, calling you, and any written correspondence. If your situation escalates to the point where legal action may be taken against you, a lawyer can meet with lenders on your behalf and represent your interests.
3. Restoration of financial stability
Most debtors who end up in financial disarray never prioritize the repayment of debts. This can result in you having bad credit, making it impossible to obtain credit cards or obtain loans for bigger purchases such as vehicles and real estate.
Hiring a debt settlement attorney can help you find a new lease on life financially. The lawyer assists you in organizing your debts and coming up with a plan on how to pay them off based on the potential of lawsuits being filed against you. By doing this as well as representing you when dealing with lenders, collection agencies, and their legal representation, you will have the best chance possible in seeing a resolution and eventually putting you on the path to financial stability.
4. Customized service
Unlike collection agencies, debt collection lawyers can customize their plan to assist in any given situation. Skilled collection lawyers will practice due diligence and exhaust all possible avenues on behalf of their clients to get results.
Debt collection lawyers have all the right tools available to make sure you are able to recuperate the debts owed to you. These include property foreclosures, wage garnishments, and bank levies. In most cases, these tools are enough to convince a debtor to pay.