A debt collection attorney is a lawyer who specializes in unpaid account matters. Major creditors, such as credit card companies, use them to collect unpaid debts from customers, but they can also be used debtors. When faced with a difficult financial situation, such as preparing to file for bankruptcy or being sued, some people choose to hire a debt collection attorney.
When there is a financial dispute, both parties can use debt collection attorneys. Attorneys can often tell whether it is more profitable to pursue litigation or to use credit counseling to alleviate both parties’ concerns. They may even advocate for debt discharge or a restructured payment plan in some cases.
In a few key ways, a debt collection attorney differs from a collection agency agent. Above all, collection agencies work solely for the benefit of creditors. This means that debtors will be unable to hire a collection agency to assist them in enforcing their legal rights. Many collection agencies are subsidiaries of major corporations, such as credit card companies, with in-house finance departments.
A collection agency is frequently the first step in the debt collection process. Once the debt collection process has progressed beyond the collection agency’s expertise, it is turned over to a debt collection attorney who has been specially trained to pursue legal action. Some businesses, on the other hand, hire attorneys at the start of the debt collection process to make the situation appear more serious.
Debt collection lawyers are frequently used as a last resort creditors. When a debt becomes unmanageable, large corporations hire debt attorneys to assert creditor rights to asset collection. When working for a creditor, debt collection attorneys are able to use legal jargon that most people are unfamiliar with in order to collect debt. They may even ask the court to garnish wages or sell valuable liquid assets in extreme cases.
Debtors can also hire a debt collection attorney to represent them in court. When debtors are being sued major creditors, they frequently hire debt attorneys. Most legal systems require an individual to hire a lawyer in order to appear before a bankruptcy judge if the debt is significant. Debt collection attorneys represent their clients in these cases utilizing their specialized knowledge of debts and assets.