TYPES OF COLLECTION ATTORNEYS PART ONE

TYPES OF COLLECTION ATTORNEYS PART ONE

Collection attorneys begin the process of negotiation with debtors to help collect on money that is owed to a creditor.  While they are not popular with the debtors, they provide an invaluable service to the company hiring them.  The fees charged for their services are much less than what a company would spend having an employee attempt to collect on bad debt.

For companies that wish to hire a collection attorney there are several types for them to select from.  Depending on the type of debt that is owed, and the type of collection that is needed will help solicit the type of collection attorney that is hired.  Collection is an art of negotiation, and creditors want to find the type that best fits their needs.

Debt Collection Attorney

Debt Collection Attorney

From time to time life throws us circumstances that may cause us to miss paying a bill on time, or even not paying it at all.  Once these bills have been with the owed party for an extended amount of time unpaid most companies will solicit the help of a collection attorney to collect the debt for them.  

The amount of time you have before an account is turned over to a collection attorney can vary from as little as 3 months to 24 months or more.  You will definitely know when it has been turned over as the collection attorneys will start calling you about the money owed to the creditor.  Collection attorneys can collect on all kinds of debt.  Money that you owe a bank, apartment complex, credit cards, medical bills.    

Collection attorneys have access to information that will help them in tracking down the debtor.  If they can’t find your address, or have had statements returned they can use reverse phone directories, or may even access city records or use a service such as Net Detective.  Once you have been contacted the collection attorney will want you to pay the debt in full.  If you can’t they will at minimum want you to setup a payment plan.  This can either be weekly, bi-weekly or monthly.  You will also then owe them a fee as well.  The collection attorneys will attempt in every means possible to collect on the debt for the creditor, or if they have sold them the debt collect on the debt they purchased.  

You do have the option to contact the original creditor which you owe and explain to them the situation and see if you can make arrangements with them to avoid further fees.  Many will agree especially if you can make a payment immediately.  

You should check your credit profile often to ensure that your credit record does not include duplicate reports.  It is your legal right to have duplicate reports of the same account removed should they occur.  You have the legal right to protect your credit report and make sure that any collection activities are reported correctly against you.

BAD DEBT RECOVERY

Debt Recovery

Contact Florida Debt Attorney Marcadis Singer  PA 

Bad debt actually has two steps to its collection.  First bad debt must be identified, and then recovered.  

While it sounds easy identifying bad debt is not always as simple as it may sound.  Although the earlier it is identified the easier in most cases it is to collect.  Bad debt can be identified earlier in the process but watching for the following signs.

The customer fails right off the bat to pay per the agreed terms.  A customer that makes unrealistic complaints about a service or a product normally will hold back, or never make the payment.  Some customers will ask for continuous extensions on the payment due dates.  Phone calls or letters are ignored by the debtor.  Also those customers that always pay late, will eventually in most cases turn to bad debt.  

Once the bad debt is identified, the recovery process can begin.  For some companies they may first attempt to collect the debt in house, to try to maintain a good relationship with the customer.  If you do this and have good documentation to prove the debt in many cases the customer may make good on the debt and make recovery easy.

For a constant or chronic defaulting customer the in house collection efforts don’t always work.  In this case debt collection attorneys have the ability to enforce efforts to collect and use the legal boundaries provided to collect for you.  These attorneys also will be more successful for your collections when you provide them all the necessary data to help in the collection process.  Marcadis Singer PA has the knowledge to utilize all techniques available to them for collection of the identified bad debt.