Debt Collection Lawsuits and Creditor Judgments
When creditors need to collect on a debt, they often enlist a debt collection agency to complete this task. However, debt collectors often receive specific protocols on how to collect these payments. The “debt owner” may outline specific guidelines for these transactions. Similarly, federal and state laws impose additional requirements concerning debt collection.
Some debtors may remain delinquent on their accounts for some time. The process typically begins with the original creditor seeking repayment on their own. Unfortunately, these efforts often go unanswered with a debtor not responding, or choosing to avoid paying the bill in full.
This is where a creditor may seek submission of the debt to the third-party collector. Often, the creditor will then sell the debt to this collector for pennies on the dollar. The debt collector then becomes the new proprietor of the debt, receiving the original rights afforded to the original creditor for the balance owed.
Nevertheless, a debt collection lawyer in Coral Gables wields unique abilities and legal rights that a collection agency does not possess. Read on to learn more about how a legal professional can help reclaim portions, or the entirety of owed debts successfully.
The Role and Benefits of a Debt Collection Lawyer in Coral Gables
Third-party collectors often cannot collect on debts, at least not in their entirety. In these instances and situations where a debtor owes a significant total on a debt, the creditor may seek the assistance of a qualified debt collection legal firm.
The firm will often begin activities by dispersing correspondence to the debtor. The letter will usually state that a creditor retained legal representation in the matter, representing their interests to collect the debt. This document will additionally demand payment and outline a specified amount of time that a debtor wields to dispute the debt.
Furthermore, the letter may also outline how to initiate a dispute, in addition to information on the potential for further legal action if they fail to respond or repay the debt.
A debtor receiving this notice may also seek their own legal counsel. Should this take place, the attorney then handles all communication after the debt collection lawyer in Coral Gables receives notice of the debtor’s legal counsel enlistment. Their attorney is now authorized to act on behalf of the debtor in these matters.
Lawsuits, Judgments, and Negotiation
The majority of debt collection cases never reach the courtroom phase, settling outside of court. However, if both sides cannot reach an agreement, the debt collection lawyer in Coral Gables will file a lawsuit in the debtor’s state of residence. The debtor then wields a limited amount of time to respond to this complaint.
If the debtor does not respond within the provided time limit, the debt collection attorney can then seek a default judgment. This essentially means that the court could rule in favor of a creditor who can then take the necessary legal steps to collect on the judgment as if they won the case outright.
If and when the courts rule in favor of a creditor, the creditor can then initiate activities to collect on this judgment by placing liens on the debtor’s property, as well as garnish wages to reclaim their rightful property.
Debt collection law firms employ attorneys who remain well-equipped to take a case to court to collect on the debt. Lawyers have the experience to file the necessary paperwork and offer efficient legal services to expedite the collections process.
A debt collection lawyer in Coral Gables can and will continue representing the creditor’s interests after attaining a judgment as well. This includes initiating collections efforts like wage garnishment, liens on the property, and collection of profits, wages, and business income.
Information on a Debt Collection Lawyer in Coral Gables from the Law Offices of Paul A. Humbert, P.L.
Creditors often look at speed as the primary consideration in making their decision for who best to represent their interests in a debt collections case. Debt collections agencies may make their best efforts towards collecting a debt, only to return in failure. This is where the creditor must turn to a debt collection lawyer in Coral Gables to reclaim their property.
Unfortunately, some creditors may not possess this kind of time to reach a resolution. Debt collections law firms wielding the legal backing to recover a debt in a swift, efficient manner remain the preeminent solution for creditors looking to acquire the full amount of their judgment in a short time.
To learn more about debt collection with a legal firm, contact our professional attorneys from the Law Offices of Paul A. Humbert, P.L. today!
- “Fair Debt Collection Practices Act | Federal Trade Commission.” https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text. Accessed 31 Dec. 2019.
- “Florida Consumer Collection Practices Act | Nolo.” https://www.nolo.com/legal-encyclopedia/florida-consumer-collection-practices-act.html. Accessed 31 Dec. 2019.
- “Default Judgment | Wex | US Law | LII / Legal Information ….” https://www.law.cornell.edu/wex/default_judgment. Accessed 31 Dec. 2019.