It is not uncommon for creditors to face troubles while collecting a debt. There are three basic options. The first is to send a letter requesting payment, but if the debtor doesn’t want to pay, that letter wouldn’t do much. The other two options are to either hire a collection attorney or a collection agency. Working with reliable New York collection attorneys can help in getting debts you are owed.
Are collection attorneys the same as collection agencies?
While the nature of work is the same for both collection attorneys and collection agencies, there is a major difference too. A collection agency is just what it sounds like – They will keep calling the debtors on your behalf so that you can get back the money you deserve. When a debt is eventually collected, they will charge you a fee, which is usually an agreed percentage of the debt owed. Collection attorneys also specialize in debt collections, but they also have legal expertise and can take action against debtors who refuse to law. As needed, your debt collection attorney can also file a lawsuit against a debtor.
The big difference
Collection agencies can file for credit reports, run after the debtors to get back money for their clients, but they cannot sue a client. They cannot take the role of an attorney in such cases. In other words, a collection agency will do or adhere to the same things or ways that you would to get back your money, except that they would use an automated system and their extended team. This also means that hiring a collection agency doesn’t mean that they can get back your dues and money better.
The role of collection attorneys
A collection attorney specializes in debt collection, but they also do a lot of other things. From investigating the assets of the debtors to pursuing fraudulent transfers, they do it all. In some cases, when a company is not paying up, it can work in a way that owners can be held liable for the debts owed by the company. Enforcing judgments is one more thing that collection attorneys can do for you, and this can be done against successor entities.
When someone doesn’t want to pay your debts, don’t merely sit back and wait for a good time. Consider working with a collection attorney, who can guide you through the process and make things simpler for you.