Law Firms as Debt Collectors

It is not uncommon for collection agencies to use less than honorable tactics in trying to receive payment for a debt. Over recent years, the federal and state governments have stepped in to create laws prohibiting what they consider abusive or harassing tactics. One such practice is the use of attorney letterhead to motivate debtors into paying a debt. There was a time when creditors would use the guise of a law firm to threaten or frighten unsuspecting consumers into paying their debt. Now, thankfully, such practices are prohibited under both federal and state laws; however, that does not mean a law firm cannot be used in the pursuit of debt collection.

When Are Lawyers Called or Used?

There are a couple of scenarios where you still may see an attorney’s letterhead: in conjunction with a debt collector’s pursuit and when a lawsuit is pending. Many collection agencies will partner with law firms, and in so doing, may send out notifications of collection attempts on official letterhead. Still, the letter must state that it is an attempt to collect the debt. Any message must also say the extent of the attorney’s involvement thus far, which is often none.



The other time you may get notification from an actual attorney is if legal action is imminent. The law firm will send you a notice of the pending litigation in an attempt to spur discussions. If you refuse to talk, then the firm may move ahead with suing you over your debt.

Why You Need an Attorney

Anytime you receive official notice from a law firm, you need to take it seriously. While many collection attempts may be mainly threatening with no follow-through, a lawyer typically only gets involved when the debt is worth a court battle. Therefore, if you do not have the money or means to settle the debt or fight a court case, you may need an attorney to intervene on your behalf. Most likely, if you lack in funds, then you will want the assistance of a bankruptcy lawyer, who can intervene and stall litigation until you can file bankruptcy.

Filing for bankruptcy is not a decision you should take lightly. Still, it may be the most reasonable option you have, especially if a law firm or collection agency is threatening a lawsuit. Before deciding to file, consider talking to a bankruptcy lawyer in Tampa, FL, like from The Law Office of Michael A. Ziegler, P.A., to understand all available options fully.


When Are Lawyers Called or Used?

There are a couple of scenarios where you still may see an attorney’s letterhead: in conjunction with a debt collector’s pursuit and when a lawsuit is pending. Many collection agencies will partner with law firms, and in so doing, may send out notifications of collection attempts on official letterhead. Still, the letter must state that it is an attempt to collect the debt. Any message must also say the extent of the attorney’s involvement thus far, which is often none.



The other time you may get notification from an actual attorney is if legal action is imminent. The law firm will send you a notice of the pending litigation in an attempt to spur discussions. If you refuse to talk, then the firm may move ahead with suing you over your debt.

Why You Need an Attorney

Anytime you receive official notice from a law firm, you need to take it seriously. While many collection attempts may be mainly threatening with no follow-through, a lawyer typically only gets involved when the debt is worth a court battle. Therefore, if you do not have the money or means to settle the debt or fight a court case, you may need an attorney to intervene on your behalf. Most likely, if you lack in funds, then you will want the assistance of a bankruptcy lawyer, who can intervene and stall litigation until you can file bankruptcy.

Filing for bankruptcy is not a decision you should take lightly. Still, it may be the most reasonable option you have, especially if a law firm or collection agency is threatening a lawsuit. Before deciding to file, consider talking to a bankruptcy lawyer in Tampa, FL, like from The Law Office of Michael A. Ziegler, P.A., to understand all available options fully.


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