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When would you require the services of a Debt collection attorney?

By James

Debtors and creditors both may find themselves in need of a Debt collection attorney. Getting calls from collectors make debtors dreadful while creditors hate it when their calls get rejected and dodged by debtors. An experienced debt collection attorney can provide his services to either of them.

The billing method of the attorneys varies in such cases. Some of them charge their clients on an hourly basis while others work on a contingency basis which means that you are not required to pay your attorney unless he wins the case for you. A percentage of what you receive will be taken by your attorney. Most lawyers work on a contingency basis for creditors. If you are on the debtor side, you will have to discuss the billing method with your attorney.

How a Debt Collection Attorney will help you?

A legal professional can not only help you by advising the appropriate strategies to follow in order to get you the money that you lent, but also the protection you need from impatient creditors. Representation in court and the paperwork you need can be taken care of by your attorney.

When will you need the help of a Debt Collection Attorney?

There are some signs for debtors that tell them whether they require the help of a debt settlement attorney. These include:

  • If you get frequent calls from creditors at your home or workplace
  • If you find yourself incapable of paying your loans at present
  • If you feel the threat of a lawsuit against yourself by your creditor
  • If you are not treated right by your collectors
  • If you want reduction or elimination of loans, you may consider a debt collection attorney's help. You may be successful in avoiding debt collectors in this way

If you are having trouble getting your money back from a debtor, the help of a debt collection attorney can provide you with the ideas about appropriate course of action to get your repayment. A creditor rights attorney is someone who is specialized in working only for creditors to help them get their money back. In case you want your repayment, services of a creditor rights attorney can also be sought for.

A creditor can be successful in regaining the money he or she loaned out to the debtor with the help of an attorney. Decisions like going to court, the amount you will receive and the timeframe depend upon the ruling of the judge. If both parties agree upon settling the matter outside the court, they may be able to negotiate the terms by themselves.

While a debtor will have to return the amount he borrowed, there might be a possibility that a lesser amount is required to be paid if the debtor's attorney is successful in negotiating the amount down.

The matter should be attended to in any case to protect either of the parties from being bothered again. If as a creditor or debtor, you don’t like being taken advantage of and the situation gets out of hand, you should get help from a debt collection attorney for your defense.

What is the Collection Procedure that is commonly followed?

If the original creditor fails at his attempts to regain the money he lent to his debtor, the option of submitting the debt to a third debt collector party can also be considered. Submitting the debt to a third party is usually done by selling the debt. In this way, the ownership of the debt is transferred to the debt collector and he gets the rights equal to that of the original creditor to regain the owed money. There are other ways that keep the ownership of debt to the original creditor but he has to pay a portion of the debt collected from the debtor to the debt collection company.

What is the role of a Debt Collection Law Firm?

The services of a debt collection law firm can be received when the third party collector fails to collect the debt. When approaching a debt collector law firm, the debtor is sent a letter that makes him conscious to the transfer of responsibility of debt collection. It is also demanded in the letter that the debt be paid as soon as possible. The possibility of facing a lawsuit in case of no response or inability to pay off the debt is also warned about in the letter.

What role is played by the Debtor's attorney?

Debtors who get the notice of involvement of an attorney may seek the counsel of an attorney for themselves. The responsibility of handling communications with a collection law firm is shifted to the debt settlement attorney as he or she is hired. Once the attorney is retained, he gets the right to make decisions on behalf of the debtor. Any attempts by the collection firm to reach the debtor after involvement of a debt settlement attorney are considered inappropriate. Negotiations with the debt collection firm are tackled by the debtor's attorney. The attorneys are more likely to reach a settlement in which the debtor is required to pay only a portion of debt in fulfilment of debt.

When is a lawsuit filed?

In case negotiations between the two parties fail, the attorney acting on behalf of the creditor will have to file a lawsuit. The time to respond to the complaint is limited for the debtor. If no response is filed by the debtor within the given deadline, the debt collection law firm holds the right to pursue a default judgement from the court in favor of the creditor. According to this default judgement, the creditor can follow the procedure ordered by the court to collect the debt.

How can a debt settlement attorney help?

The rights of the debtor are protected by a debt settlement attorney by responding and filing specified motions and answering certain requests and motions. The attorney can also defend the debtor by raising any applicable defense present.

How is the court's judgement going to affect both parties?

An order against the debtor allows the creditor to follow steps ordered by the court to regain the money loaned out. The creditor holds the right to ask for the possession of any real estate owned by the debtor or a garnishment on the debtor's wages until the debt is discharged. A debt settlement attorney can help the debtor by working out a consent judgment that prevents some of these actions.

Author Bio:

Connecticut Attorney David Volman provides legal representation in family law, personal injury, bankruptcy, criminal cases and business law.

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