Whether you’re on the side of the debtor or the creditor, you might be stuck in a tough financial situation if there’s an unpaid debt. As a creditor who is not getting paid, you have a harder time fulfilling the financial responsibilities you have. As a debtor who cannot pay a debt, you run the risk of getting sent to collections with all their high fees and constant contact, as a bankruptcy lawyer, like from Chorches Bankruptcy Law, can explain. On either side, you might be working with a collection attorney. Is he or she the same as a debt collector?
What a Collection Attorney Does
If you’re the debtor, a collection attorney can help you avoid having to deal with a harassing collector. Debt collectors do have certain laws and rules they have to abide by, and if they cross the line with you, you can take legal action. Your collection lawyer can also help you negotiate a lower payback amount if you are truly unable to make your payments and are facing bankruptcy.
If you’re the creditor, a collection attorney can act as a collector, though there are different rules and laws the attorney has to abide by. Collection attorneys are often the next step after hiring a debt collector who was unable to get any money for the debt. In most cases, the attorney will inform the debtor about the debt and about the creditor’s intentions for what he or she will do next.
The lawyer will need to make it clear he or she is not taking legal action, and if the lawyer doesn’t review cases, that should also be made clear. Any debtor should plainly understand the lawyer is acting as a debt collector when a letter is received concerning the debt. When a creditor decides enough is enough and he or she wishes to take the debtor to court, a collection attorney can represent the creditor.
One Key Difference To Consider
There are a couple key differences when it comes to the different services provided by debt collectors and collection attorneys, with one being the debt balance. Many collection lawyers will not accept a case if the debt doesn’t reach a minimum amount. For example, if a creditor is trying to get payment for a $500 debt, a lawyer may not take the case, but if another creditor is trying to get payment for a $1500 debt, the lawyer could take it.
Debt collectors, on the other hand, will take almost any debt amount and work to get it paid. Even one as low as $50 or $25 could be tackled by debt collectors because they have specialized small-debt agents.
Get In Touch With a Collection Attorney
Whether you’re a creditor or a debtor, it might help your situation to get in touch with a collection attorney. Call today to get the help you need.