Collections Creditor Rights Law Guide, Resources & information
Collection attorneys give assistance to creditors in pursuing their debtors.It depends on the type of debt that is owed to you. There are two types of debt:
Secured Debt: A debt that has some form of property that is used as collateral to secure the debt. For example: a home loan is secured by the house. If the debtor doesn't pay his/her mortgage, the creditor can foreclose and take the house to repay the debt. Another example is a car loan. If the debtor doesn't pay the car note, the car can be repossessed, sold at an auction to recoup most if not all of the debt. If any debt is left over after the car is sold, the creditor can then hold the debtor liable for the remainder of what is owed. Collection on what is left is done in a similar manner as collecting an unsecured debt (described below).
Unsecured Debt: A debt that doesn't have any form of property the creditor can take as collateral. Collection attorneys have a harder time collecting these kind of debts. Creditor rights attorneys suggest that you continue sending reminders and demand letters. If the debtor still doesn't pay, you can hire a collection agency. Your last resort is to file a lawsuit against the debtor and secure a judgement against him/her through the courts.
Know your rights and exercise them for a safe, better future.