A debt collection lawyer is a legal expert specializing in getting back unpaid debts on behalf of creditors or representing debtors in collection lawsuits.
According to research, people sued for debts rarely have a lawyer to represent them and those who do have better case outcomes.
More research states that less than 10 percent of defendants in debt collection lawsuits have counsel, compared to nearly all plaintiffs.
Why Hire A Debt Collection Attorney?
The answer to the question is so that they can help you avoid a debt collection lawsuit or help you collect debt.
First and foremost, the best way to defend against a debt collection lawsuit is to avoid it completely. Not all debtors want to take their case to court.
So, it’s best to sort out a settlement out of court.
However, if the debtor is in no good position financially, then seek out a lawyer. The lawyer will help you understand what options they have that will help them with debt collection lawsuits.
Furthermore, lawyers help negotiate with the creditor on their client’s behalf and help both parties come to a reasonable settlement without the need to go to court. Many creditors are hiring a virtual attorney to cut down costs.
Afterall, even a small debt collection lawsuit can turn into a big problem if you are unable to deal with it the right way.
What A Debt Collection Attorney Does?
- Pre-Suit Collections
Before jumping into any type of legal proceedings, most lawyers start with sending out formal demand letters to the debtors. This is to resolve the matter without the need for court involvement.
An early settlement saves the client’s protracted time and cost of lawsuits. If this approach is successful, then you will be able to avoid the need for litigation.
- Filing Lawsuits
If the demand letter doesn’t work out as planned, the debt collection lawyer then files a lawsuit against the person who owes the debt. If the debtor doesn’t respond or appear in court, then a default judgement is obtained against the debtor.
The attorney then takes the necessary measures to collect the debt with the court’s permission.
- Obtaining Judgement Liens
Judgment Lien is a legal claim placed on a debtor’s property after a court judgment is rendered against them for unpaid debt.
A judgement lien can result in tax garnishments, wage garnishments, seizure of valuable items, decline in credit records and even home foreclosures and bank account levies.
If a debtor doesn’t respond to a debt collection attorney’s complaint, then the lien will be requested.
- Enforcing Judgements
Debt collection attorneys utilize creative, professional and effective methods for enforcing any judgement liens. Their goal is to ensure that the unpaid debt is recovered.
The team working with the debt collection lawyer will start with filing all necessary paperwork with the Courts, IRS, and the State so that the judgements are legally recorded and any interest that grows on the debt is accurately calculated.
Morvoer, through electronic research methods lawyers find out the properties owned by debtors and keep an eye of the debtor whether they buy any new collectible property.
- Property Seizure
If necessary, the court may issue an Order to Seize Property.
An experienced debt collection attorney helps locate all property that should be seized and teams up with Court Officers to seize the property lawfully.
Usually, personal property is first to be seized in an attempt to settle the debt. However, if the selling price of that property doesn’t cover the full amount owed then the attorney’s may pursue other real properties that belong to the debtor.
- Domestication of Foreign Judgements
If a creditor has a valid foreign judgement, a debt collection attorney can make it enforceable in the state. This is called the process of “domestication”.
It allows creditors to pursue debtors who have moved or own assets elsewhere.
- Confirmation of Arbitration Award
Arbitration awards are not self-enforcing unlike court judgements. Attorneys assist in petitioning the appropriate court to confirm the award, which then becomes a binding judgment enforceable by law.
This is especially needed if the other party will not pay willingly.
Advantages of Hiring An Expert to Collect Your Debt
Expertise and Specialized Knowledge
Debt collection attorneys are well-informed on debt collection laws, regulations, and procedures. They will know where to look and the legal options you have.
Legal Compliance
It is their job to ensure that creditors’ actions and strategies fully comply with applicable debt collection laws. For instance the Fair Debt Collection Practices Act (FDCPA).
This makes sure that creditors are protected from potential legal risks and ensures ethical and lawful debt collection practices.
Enhanced Debt Recovery
These debt collection lawyers are legal experts skilled in negotiating which significantly improves the chances of debt recovery.
Their experience of this matter increases the likelihood of successful resolution through negotiation, settlement or legal actions.
Time and Resource Savings
Creditors lose time and resources because of difficult debtors.
The next best solution is Legal process outsourcing.
To outsource the collection efforts to a debt collection attorney. This way creditors can focus on their core business activities while ensuring the complex debt recovery task to experts.
Legal Protection
To top it off, hiring a debt collection attorney gives the creditor legal protection and representation throughout the debt collection process. Wondering how?
Well, the attorney will guide you down the process, handle the legal disputes, defend against counterclaims, and protect the creditor’s rights and interests.
Search Engines For Debt Collection Lawyers
- Lawyer Referral Services: start searching for a debt collection lawyer by contact a lawyer referral service in your area.
- State Bar Association: Another popular method is finding a lawyer referrals in your area by checking the American Bar Association website or your state bar association.
- Online Directories
- Referrals: Get a referral from an attorney you know or have worked with before.
- Legal Aid Programs: Find yourself state-based legal aid programs for law-income consumers.
- Consider A Bankruptcy Lawyer: Moreover, depending on the amount and nature of the debt, it may be best to consult with a bankruptcy lawyer. Bankruptcy attorneys may come in handy in many contexts.
Ask These Questions Before Hiring
- How much of the debt collection attorney’s work involves consumer law and representing consumers?
- Ask about the attorney’s experience. How many cases like yours have they handled?
- Make sure to ask about the payment method. Do they charge an up-front fee?
- Will I have to pay even if I lose my case in court?
- For instance, you are having financial troubles. Ask if they can refer you to a consumer law attorney who may not charge up-front fees?
Top 8 Debt Collection Service Providers
1. IC System
With over 80 years of experience, this debt collection agency provides tailored collection services. These guys specialize in early-stage collection, credit card debt recovery, and medical debt solutions.
IC System utilizes advanced technology and analytics to boost recovery rates and improve client satisfaction. They focus on maintaining ethical standards and transparent communication throughout the process.
Moreover, they offer additional services such as debt recovery reporting and customer education.
2. Midland Credit Management
Midland Credit Management is a well-known debt collection agency that focuses on resolving credit card and personal loan debts. They do this by offering flexible settlement plans to consumers.
This agency has been using data and technology to create customized solutions for clients. This technique helps ensure a higher rate of recovery.
Midland Credit Management also works closely with consumers to help them understand and resolve their debt responsibly. The company is devoted to adhering to all regulatory requirements and providing transparent communication.
3. Transworld Systems
This agency offers customized debt recovery services for businesses of all sizes. They have designed their solutions in a way that improves cash flow. It focuses on targeting past-due accounts through automated processes and skilled agents.
Transworld Systems provide various debt collection services which includes early-stage collection, receivable management, and third party collections. Transworld Systems is known for its technology-driven strategies and customer service excellence.
Lastly, they offer client reporting and analytics tools to track recovery progress.
4. PRA Group
PRA Group is an internationally known leader in the debt collection industry.
They provide comprehensive services for individuals and businesses and focus on gathering and managing portfolios of non-performing loans across various sectors. Moreover, they use innovative solutions and data analytics to improve debt collection outcomes.
They have always kept compliance and customer respect close to their cores and this helps clients recover revenue while maintaining strong customer relationships.
Their portfolio services extend from early-stage collections to asset recovery.
5. Encore Capital Group
Quite the popular debt management firm, Encore Capital Group focuses on consumer debt recovery. They not only leverage data analytics but also advanced technology in order to maximize returns for clients. All of this while adhering to strict regulatory standards.
With its highly trained agent, Encore Capital Group is known to provide solutions to businesses across various sectors while following ethical practices. This ensures a positive recovery experience.
6. Stealth Agents
One of the top debt collection service providers, Stealth Agents specialize in innovative, risk conscious recovery solutions. They focus on optimizing debt recovery rates through highly skilled agents and technology-driven strategies.
The company believes in maintaining ethical and complaint collection practices. Stealth Agents have been promising creditors and consumers seamless experience with their customer-first approach.
7. Convergent Outsourcing
Convergent Outsourcing is known for its cost-effective and ethical debt collection services. Not only does it offer early-stage collection solutions but it also offers late-stage debt collection solutions.
Moreover, Convergent Outsourcing utilizes cutting-edge technology to optimize recovery rates and maintain compliance with industry regulations. Their agents are highly trained to deal with sensitive debt recovery situations professionally and respectfully.
8. CCS Collections
This agency provides comprehensive debt collection services to businesses in various sectors. CCS Collections provides end-to-end solutions which includes early intervention, third party collections, and legal services.
CCS Collection is known to work closely with clients to craft tailored collection strategies that optimize the recovery process. All this while maintaining positive customer relationships.
Setting A Criteria For Your Debt Collector Attorney
Experience and Track Record
When it comes to debt collection, experience is a necessity.
Attorneys who have had close to a decade of experience handling debt collections generally come to the negotiation table and court with highly refined strategies for negotiation and litigation.
They’ve seen it all and know how to get things done.
Speciality and Jurisdiction
Jurisdiction plays a huge role in how commercial and personal debts are settled. Thus, a lawyer who is familiar with their legal environment can navigate it effectively.
Specialization is key too. Some attorneys focus on commercial debt recovery, while others focus on recovery of personal or specialized debts.
So, it’s best to hire a debt collection attorney whose specialization aligns your needs. This ensures you have a more tailored approach.
Cost Considerations: Fees and Payment Structures
Debt collection attorneys offer the following payment models:
- Contingency Fees: Common choice for commercial debts. The attorney takes a percentage of the recovered amount.
- Hourly Rates: Best for complex cases that require substantial legal work.
- Fixed Fees: often used for straightforward cases such as issuing demand letters.
Based on your budget and complexity of your case, you can decide on the payment option best suitable. To avoid misunderstandings it is best to maintain transparency regarding fees. This ensures a mutually beneficial arrangement.
Recommendations and Reviews
Having a strong network is an invaluable resource. Businesses can recommend the attorneys they have worked with successfully.
Online reviews on various platforms further verify the attorney’s expertise, reputation, and ability to handle debt collection cases effectively.
So, best to hire a debt collection attorney after doing thorough research and verifying their expertise using the various resources.
Conclusion
We have learned that a debt collection lawyer is a professional who specializes in recovering unpaid debts on behalf of creditors or representing debtors in collection lawsuits.
We discussed about:
- Why are they being hired?
- What exactly do they do?
- The benefits of hiring a debt collection attorney
- The platforms where you can find debt collection lawyers
- Top 8 Debt Collection Service Providers
- The criteria of the right debt collection attorney for you
Once diving in-depth, we understand the importance of a specialized debt collection attorney.
All in all, we have to evaluate the complexity of our case and the budget before moving forward with hiring the ideal debt collection service provider or attorney.
Rafia Alam Rowshni delivers a unique combination of legal knowledge and content creation talent using SEO Tools and SERP analysis. She has a solid background in public health and legal services and knows the complexities of the legal world. She can translate complex subjects into simple, concise, and entertaining information that audiences can actually use.
