How Can Lawyers Work as Debt Collectors

Personal Injury Lawyer

If your company is having trouble bringing accounts current, you may enlist the help of a collections agency. Sometimes, not even this step will be successful in reaching debtors and getting them to pay their bills. if this is the case, you may escalate the matter to an even higher level by hiring a law firm. Debt collection attorneys have the knowledge and training to work within the law and expedite the collections process. It’s important to understand a collection attorney’s role and what they can and can’t do.

Not a Debt Collection Agency

Attorneys, whether working alone or with a law firm, focus on a wide variety of practices and aspects of the law. Some may specialize in debt collection laws and regulations. Companies, including credit card companies and health care facilities, may hire collections attorney to help reach out to delinquent customers in bringing their accounts current. In this role, however, attorneys are not debt collectors, nor are the firms for which they work debt collection agencies. Instead, the attorney works on behalf of the creditor to collect payments.

Working Within the Law

When an attorney assists with debt collection, he or she must abide by fair debt-collecting practices. This prohibits the attorney from any activities that could constitute harassment or unreasonable attempts to settle a debt.

The Scope of Their Work

While debt collection agencies may work to settle accounts as low as $20, attorneys are usually called upon when the amounts reach higher figures. It is common for collection attorneys to work on debts of $1,000 or more. The attorney may also get involved when the account is several months past due and when a collections agency has made numerous attempts to collect the debt. Attorneys have the skill and training to take matters to court. The lawyer will consult with the creditor to determine when it makes sense to file a lawsuit or when other efforts may be better for the company.

On the Debtor’s Side

Lawyers may also represent the creditor in certain situations. An individual could hire a collections attorney to help settle a debt dispute or negotiate adjustments to the account. A debtor could also file a lawsuit against a creditor if he or she felt as though the company used illegal tactics to try to collect the debt.

If you are thinking about hiring a collections attorney, understand what this individual could do for you. This professional wouldn’t be a debt collector but would instead represent your interests. To get help with your case, set up a consultation with a chapter 13 bankruptcy lawyer, like the attorneys at Kamper & Estrada, PLLC as soon as possible.

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