A debt collection attorney specializes in unpaid bills and can be hired by both creditors and debtors. They may recommend litigation or credit counseling and can advocate for debt relief or a restructured payment plan. They differ from collection agency agents as they can be hired by debtors and operate on behalf of both parties. Creditors hire debt collection attorneys as a last resort to collect assets, while debtors may hire them when being sued by major creditors.
A debt collection attorney is a lawyer who specializes in matters relating to unpaid bills. They are often employed by large creditors such as credit card companies to collect unpaid debts from customers, but they can also be employed by debtors. Some people choose to hire a debt collection attorney when they find themselves in difficult financial situations, such as when they are preparing to file for bankruptcy or when they are being sued.
Debt collection attorneys can be utilized by both parties when financial disputes arise. Lawyers often say whether it would be more profitable to pursue litigation or use credit counseling to ease both parties’ anxieties. In some cases, they may even advocate for debt relief or a restructured payment plan.
A debt collection attorney differs from a collection agency agent in a few important ways. Most importantly, collection agencies operate solely on behalf of creditors. This means that debtors cannot hire a collection agency to help them assert their legal rights. Many collection agencies are internal financial agencies of large corporations, such as credit card companies.
Often, a collection agency represents the first stage of the debt collection cycle. Once the debt collection process has passed the collection agency’s expertise, it is turned over to a specially trained debt collection attorney to initiate legal action. Some companies, however, choose to use attorneys early in the debt collection process to make concerns more serious.
When creditors hire debt collection attorneys, they usually do so as a last resort. Large corporations use debt attorneys to assert creditors’ rights to collect assets when debt becomes unmanageable. Debt collection attorneys, when on the creditor’s behalf, may use legal terminology that is not normally familiar to ordinary citizens to collect debts. In extreme cases, they may even ask the court to decide wages or the sale of valuable liquid assets.
It is also possible for debtors to hire a debt collection attorney on their own behalf. Debtors who use debt attorneys often do so when they are being sued by major creditors. If the amount of debt is large, most legal systems require an individual to hire an attorney to appear before a bankruptcy judge. In these cases, debt collection attorneys represent their clients using their expert knowledge of debts and assets.
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