posted byBagasian LawJanuary 27, 2021
Whether you owe money or are seeking to recover unpaid debts, an attorney can help settle your collections case.
Dealing with debt collection agencies can be difficult, whether you are a creditor or a debtor. Therefore, if you find yourself having to collect or pay debts, hiring legal representation can be greatly beneficial.
By hiring a lawyer, you will be able to understand the legal implications of debt collection.
In this article, we will discuss:
A collections case aims to settle financial debts between two parties, whether individuals or businesses.
Debt collection pursues any debts that may raise a concern about your business or you personally. If you have outstanding debts, you may be contacted by a debt collector.
If you have payments that are past due, you will likely be contacted by phone or mail. Even if you owe money, you have some time to repay your dues. However, if you ignore your creditor or do not pay debts for a long time, your case will turn into a debt collections case.
On the other hand, if you are owed money by someone else, you may hire a lawyer or debt collector to retrieve that money.
However, choosing a lawyer for your collections case may be a better option than hiring a debt collection agency.
Debt collection agencies may charge you a percentage of the debt that they collect or may fail to pay you, the creditor, back.
Additionally, hiring a business lawyer will help with commercial debt litigation, which is when there is a business dispute that arises between two parties and the creditor is unable to recover the overdue money.
Especially if the collections case is affecting your businesses, the stakes are higher than ever to recover outstanding debts.
Having to pay off debts or recover a debt owed to you can be a very complex process. Although it may be tedious, a lawyer can help you settle your debt collection case.
Even more importantly, debt collection often involves large sums of money that, if lost, could greatly affect your business or prospects.
However, with a professional business lawyer, debt collection can be a less complicated and overwhelming process. Here is how an attorney can help:
They can offer strategic guidance throughout the legal process: Since there are many nuances to collections cases, many of which are complex to those who do not have a background in law, a business attorney can help develop a strategic plan to help you win your collections case.
They can inform or educate you on creditor/debtor rights: As creditors or debtors, you may have rights that you are unaware of. A business attorney will help you understand your legal rights.
They can assist in commercial debt collection: Since commercial debt litigation deals with businesses and much larger sums of money than personal debts, it is wise to hire a business attorney if attempting to settle a commercial debt.
They can assist in judgment collection: A judgment is when the court orders you to pay your debts. If you go to court for a collections case and lose, a judgment is issued, meaning a creditor can collect debts from you. A business lawyer can help determine how to settle these payments, including what is and is not exempt.
When engaging in litigation with high stakes, such as debt collection, it is important to understand your rights, whether you are a creditor or a debtor.
The Fair Debt Collection Practices Act , or FDCPA, ensures that debt is collected ethically. This law is designed to protect debtors from debt collectors who attempt to harass them.
Under the FDCPA, a debt collector cannot contact you during certain times of the day or if they know you have an attorney litigating your case.
Additionally, the FDCPA protects debtors from harassment, such as an unnecessary amount of phone calls, and threats.
Debtors are also entitled to a validation of their debt. This means that the debtor must be notified about who they owe, how much they owe, and that they have 30 days to resolve the dispute.
On the other hand, those who are owed money, also known as creditors, have their own set of rights.
First and foremost, creditors are entitled to the money they are owed
Often creditors choose to repossess the collateral. This means that the creditor has rights to the collateral and can hire someone to repossess it. Depending on the case, this could be anything from cars to personal property.
Additionally, the creditor can sell, lease or keep the collateral they acquire.
Owing debts has many legal implications. However, as either a debtor or collector it is important to know your rights. Hiring legal representation ensures your collections case will be settled.
Los Angeles-based lawyer, Alina Bagasian, will provide the best legal services for your business . Possessing an understanding of collections cases, Alina Bagasian is ready to represent you or your business and provide you with excellent legal advice.
The Law Offices of Alina Bagasian have achieved 100% client satisfaction, providing clients with unlimited advice, and offering eight different services to avoid any legal complications when running a business. Get the help you need today!