What Is a Debt Collection Attorney?
A debt collection attorney has specialized in lawsuits governing consumer debts. This knowledge allows them to represent parties on both sides of the spectrum: debtors and lenders.
How Does a Debt Collection Attorney Help Lenders?
Debt collection attorneys recommend and implement legal strategies to recover debts from customers or clients who aren’t paying those debts. Unlike debt collection agencies, a debt collection lawyer can sue the debtor if necessary.
There are a few things to consider when deciding if you should hire a debt collection attorney:
- Do you need legal advice regarding collecting debts?
- Does the debtor owe you $5,000 or more?
- Is the debtor a large company?
- Do you want to send demand letters?
- Do you think the case will eventually go to court?
There will be fees due to the attorney you hire to collect debts. Those fees can include both a set fee and a percentage of the amount that is ultimately recovered from debtors.
Many debtors take demand letters from an attorney more seriously than one from a debt collector agency. They would therefore be more likely to pay as a result of an attorney contacting them. Large companies are likely to have the resources to resist paying a debt; a debt collection attorney has a better chance of collecting that debt than a collection agency does.
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How Does a Debt Collection Attorney Help Debtors?
If you owe a debt you’re unable to repay, you’ll probably find your account turned over to collections; a debt collector agency or attorney will contact you. The circumstances surrounding your inability to pay will determine if you should hire a debt collection attorney.
The Federal Trade Commission enforces the Fair Debt Collection Practices Act. This act governs how a creditor or their representatives can attempt to collect the debt that you owe. If you think your rights under this act are being abused, a debt collection attorney can address this abuse on your behalf.
If a creditor or agency notifies you that they will take legal action to collect your debt, a debt collection attorney can step in to represent your interests. Once you’ve hired an attorney, all communication regarding collecting that debt must be directed to your attorney.
If the case goes to court, your attorney can represent you during the proceedings. If you decide that you need to file for bankruptcy, your attorney will guide you through the process and represent you in court.
How Can You Find a Debt Collection Attorney?
You’ll need an attorney licensed to practice in the location where a court case would be filed. Instead of taking the time and effort to wade through attorneys in that area yourself, let Billy.com help you find the right debt collection lawyers for you. Using Billy.com is free, and you won’t be under any obligation to hire the debt collection attorneys they recommend. Contact Billy.com today.
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