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The Best Solution For Outstanding Debt

The debt collection process starts when a debtor is more than thirty days late on their payment for something like a credit card or loan. When this period has passed, a letter will be sent out from the creditor to notify the debtor of their fault tosettle the debt that is owed.If there is still no compliance from the debtor, then the information will be sent to another company to pursue further action and collect the debt.

Consequences Of Failing To Pay Debt

The collection company will report the debt to the three credit bureaus, and the credit score of the debtor will continue to drop ifthey fail to pay the debt that is owed. If the situation continues to go unpaid and every phone call along with other attempts to collect the debt remain unsuccessful, then legal action will take place. If the debtor fails to show up to court, there will be a ruling regardless of their attendance that will be in favour of the creditor.The final settlement mustthen be paid in the manner decided by the court.

If the creditor wins the settlement in court, then they can make the debtor settle their account issues by garnishing wages, seizing property, putting a lien on their home, or a series of other ways that will give them the money that is owed. Every method of collection has to fall under the Fair Debt Collection Practices Act (FDCPA) which is a government regulation to protect individuals from any unfair or unjust actions.

Seeking Assistance

To receive thegreatest benefit from debt recovery services, hiring a lawyer will help the debtor have a fair trial if it goes to that length. The lawyer will help argue the case presented in the court of law, and there will be an agreement just like a typical trial.

Important things to avoid when dealing with debt are the unforeseen problems that will come from the advice of debt settlement companies. What a debt settlement company may do is tell the debtornot to pay that debt while they help, but the debt’s interest will continue to rise as those payments are forgone, and hidden fees may be charged to the account the entire time.

Hiring a lawyer for this kind of an issue can also help avoid this kind of experience. A lawyer will look over the entire situation and offer viable solutions, such as possibly filing for bankruptcy, or advising methods to settle the debts for less. They will also be able to represent the debtor in court if the creditor decides to sue and can point out any unjust actions that the creditor may have done to try and collect the debt owed.

Settling a debt as soon as possible is always the best way to avoid any prosecution from a debt collection agency.

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Written by Nathaniel Fried

Co-founder of Fupping. Busy churning out content and building an empire.

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