A debt specialist is a person who helps debtors resolve contractual obligations to creditors. He or she may work with debtors who require educational and legal help in resolving their debts. Some people who work in this field are employed by businesses that require in-house staff to oversee debt and collateral management. Another responsibility that someone in this field may have is assisting in the maintenance of a corporation’s liquidity and solvency. A debt specialist can sometimes help with corporate dissolutions and acquisitions.
Signing a legal contract that specifies repayment terms is usually required to incur a debt repayment obligation. When a consumer is on the verge of defaulting on a debt payment promise, or has already defaulted, legal action is usually taken. A professional in this field is expected to be knowledgeable about a debtor’s contractual obligations as well as the legal options available to him or her for relief. Consumers who do not understand how to resolve a debt may make matters worse by delaying a solution, triggering additional penalties that can snowball. A debt specialist will frequently explain to a debtor the various options available to him or her for better managing the debtor-creditor relationship.
There may be character issues involved, as a debtor may have the financial means to pay but is irresponsible and refuses. A debt specialist may provide credit counseling and financial education in some cases. He or she may have legal knowledge or be able to refer the customer to someone who can help them legally resolve their debt.
Typically, during the debt-resolution process, the debt specialist advocates for a workable solution that does not put the consumer in a lot of trouble. A person in this field, for example, might work with a creditor to reach a compromise in resolving a debtor’s obligations. This allows a debtor to pay off debt while still having enough cash flow to pay off other obligations. Essential items, such as a car, are not repossessed in this way.
On the commercial side, someone working in this field may be able to manage debt that arises as a result of a company’s financial transactions. He or she may be in charge of collateral programs and other monetary transactions that help businesses thrive, such as the swap market. In this role, a debt specialist would typically oversee money transfers and ensure proper reconciliation of company accounts with creditors. When a company or business goes bankrupt, a debt specialist may be hired to sort out the often complicated financial transactions that occurred. In this way, he or she prepares the groundwork for the corporation’s legal acquisition by another company, insolvency, or disincorporation.