What Does a Collections Attorney Do?

Lawyers come with a variety of backgrounds and areas of focus. Attorneys can represent both defendants and plaintiffs in both criminal and civil matters. Lawyers can help clients with financial matters, including collections issues. For both companies collecting money and for customers who owe it, a collections attorney can be a key resource in sorting through difficult matters concerning debt. It’s helpful to understand the role that this professional can play whether you are on the paying or collections side.

Advising Clients

Because of their extensive training and expertise, lawyers can offer valuable insight to clients who are contending with collections issues. For example, a collections company may hire an attorney to recommend whether to sue a debtor who has become delinquent on payments and has incurred significant debt. The attorney would look carefully at the case and determine whether it would be in the company’s best interest to pursue litigation or whether further collections efforts would be better. Debtors could also retain an attorney’s services to advise whether it would make sense to declare bankruptcy or how to become current with the payments. Attorneys can also do credit counseling with debtors.

Helping With Collections

When a collections agency has been unsuccessful in getting payments from customers, an experienced attorney can help. A collections lawyer could reach out directly to debtors on behalf of the company. Often, getting calls or letters from lawyers heightens the urgency of the matter and persuades delinquent customers to finally pay or make arrangements to pay. Attorneys often fill this role when the account has become several months old.

Protecting the Interests of the Individual

Debtors can also call upon attorneys when they feel as though their rights have been violated or they have been treated unfairly. Collections companies should not engage in harassment or use unreasonable tactics to collect on an account. Customers who believe companies have overstepped these bounds can pursue legal action. Similarly, a debtor may use an attorney’s skill to help negotiate with a collections company. With the lawyer’s assistance, the debtor may be able to lower payments, adjust payment plans or even work with the collections company and creditor to forgive a portion of the debt.

Getting into debt is a serious matter. Before your finances get into disarray, a collections attorney can help. If you work with a collections agency, a lawyer, like a bankruptcy lawyer from Law Offices of Ronald I. Chorches, could be on your side, too, to assist in getting accounts current.