A business cannot grow unless it provides customers with some credit facilities, and this is where debt collection comes into the picture. When a customer is not responding to calls to pay the debt, many businesses call in debt collection agencies. But there is a difference between a collection agency and a debt collection attorney. The attorney initiates a series of steps, one at a time.
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The debtor has ample opportunity to avoid ending up in court and often responds promptly to the threat of legal action. If not, there are several ways in which the attorney can collect the debt in a legal manner after getting a court judgment, as listed below:
As a business, when you hire a debt collection attorney, it triggers off a sequence of events. First, the debtor gets a legal notice which has to be responded to within a specified period. After this, the lawyer seeks a court judgment for permission to collect the debt and legal expenses from the debtor. Once the judgment is secured, the debtor's income and assets are all open to seizure.
Some of the debtor's income sources are untouchable, even after getting a judgment. This includes payments like tax refunds and social security payments which come from federal agencies.
Would you like to know more about the laws surrounding debt collection and businesses? Our business lawyers can help. Contact a business law attorney near you today for more information.
Did you know?
Debt collection lawyers are required to adhere to the terms of the Fair Debt Collection Practices Act.
The FDCPA is not applicable to actions you take as a creditor, but any debt collection agency or lawyer you hire will have to work within the boundaries defined under this act.