A debt collection attorney is well equipped with the knowledge of finance related laws, with specialization in handling debt collection cases and disputes. By virtue of the availability of a debt collection attorney to debtors as well as debt collectors, a debt collection attorney is vital to building bridges between debtors and collectors/lenders.
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What does a debt collection attorney do?
A debt collection attorney guides collectors in cases of debt disputes and litigations. The attorney offers legal advice to pursue cases against consumers erring in making payments and thus owing money to lenders, banks etc. On the other hand, a debt collection attorney when employed by a debtor, advises the debtor about ways to handle debts. A debt collection attorney is of particular help in case a lawsuit is filed against a debtor. A debt collection attorney is approved by law to represent a debtor/collector in case of financial litigations.
How is a debt collection attorney different from debt collectors?
Debt collection attorneys differ from debt collectors primarily in their mode of operation. Since a debt collector’s sole aim is to pursue and collect unpaid debts, lenders and creditors generally employ them for collecting debts. They act as a mouthpiece for lenders/creditors and act on their behalf to recover their long-standing payments and debts. There exist many debt collection agencies that are actually run by creditors and are a part of their business. A debt collection attorney on the other hand can be roped in by lenders and debtors alike and is not a “creditor-only” entity.
Debt collection issues are generally handed over to collection agents/companies in the first place. These companies/agents pursue such cases at the primary level. Once a debt collection agency has set the ball rolling and there is no resolution seen, the cases are then passed on to debt collection attorneys. The attorneys pursue the cases from there onwards and thus are second leg operatives in a debt recovery process. However, creditors are not legally bound to follow this hierarchical structure. To press on the seriousness of the case, a creditor may right away rope in a debt collection attorney.
Companies generally employ debt collection lawyers in the final stages of a debt recovery process. Bigger associations may hire debt collection lawyers right away for recovering huge debts.
A debt collection attorney may use financial jargons and policies to throw weight behind their debt recovery strategies. This is generally carried out owing to unfamiliarity of general public to financial nomenclature. In exceptional cases, a debt collection attorney may initiate legal action against debtors that may sometimes include petitioning court to seize a debtor’s income or assets, or to follow up on mortgages etc.
Coming to debtors, the debtors generally look forward to the services of a debt collection attorney when sued by creditors for steep debts. Many states have made it a mandatory requirement for debtors to appoint a debt collection lawyer when claims are quite high in amount. Even if a debtor considers filing for bankruptcy, he/she shall require the services of a debt collection attorney. It is the expertise and skill set of a debt collection attorney that comes into play in such circumstances.
Since debt collection attorneys have a deep insight into financial laws and legal issues arising out of them, they sometimes do settle disputes by negotiations between debtors and creditors. A debt collection attorney can advocate negotiations, settlements, refer to credit counseling services or offer other viable solutions that not only help in settling disputes but also lead to better debt management. Thus, a debt lawyer can be instrumental in not only settling disputes but also putting your debt management system back on the right track.
Debt collectors have at times been guilty of crossing lines while pursuing debt recovery from debtors. Instances of abusive language or intimidating correspondences have cropped up off and on. Most debtors feel the heat if they are pushed a little too much by debt collectors. Such debtors should consult a debt collection attorney to proceed for legal actions against erring collectors.
A debt collection attorney can be instrumental in stabilizing debt issues and disputes.