Most collections are handled by collection agencies or employees of the company seeking to collect revenues. However, some businesses today are finding that a Collection Attorney is more effective at collecting debts. This is because when an attorney phones regarding a debt, people take the call more seriously.
What is the Difference Between a Collection Attorney and a Collection Agency?
A collection agency is a company which is established for the sole purpose of collecting on bad debts. Many have a reputation for using less-than-legal tactics; this has resulted in many businesses seeking the services of a professional Collections Attorney.
A Collections Attorney is able to both collect on bad debts but also implement the steps necessary to pursue the most efficient legal action possible.
How Do Lawyers Deal with Debt Collections?
Debt collections…it is an action which most business owners would rather avoid, yet which all business owners must address. Many wisely choose to outsource this headache to others including Collection Attorneys.
Collection Lawyers employ many of the same tactics and tools as collection agencies. The key difference is that a Collections Attorney can provide specific legal information to a debtor. And, the fact that the debt is being collected by an attorney tells the debtor that the company is serious about collecting. This often impels them to positive action where otherwise none may have occurred.
Finally, should the debt reach the point where legal action is necessary, your AARLaw Collection Attorney will have set all steps in place to satisfy the law and ensure a positive outcome for the client.
Can a Lawyer Help with Debt Settlement?
Yes. A Collection Attorney can help you restructure your debt, working with your creditors to negotiate better arrangements. To be sure, any attorney helping with debt settlement is better than no attorney…but having an AARLaw attorney provides you with peace of mind knowing that you will get the best possible arrangements.
Does Debt Settlement Affect Credit Score?
Any change to your credit situation will affect your credit score. Whether the impact will be positive or negative depends on several factors including the exact amount, any terms, the frequency of the change, the regularity of the change, and formulas used to project outcomes.
In most cases, debt settlement will provide a positive change, but failing to uphold the terms of the agreement can cause that change to quickly sour.
What Kind of Debts Does a Collection Attorney Handle?
Collection Attorney’s handle debts of all kinds. A business which operates accounts payables, that is, which allows customers to extend lines of credit, has debtors. Their customers are in debt to them. Every company has an acceptable level of defaults they accept. When customers default at too high a level, it is common for a company to call in a Collection Attorney.
A business which wants a reputation for always collecting will use a Collection Attorney to ensure that from start to finish, the debt collection process was perfect.
A company which wants to make sure their debt collection process is right and legal may hire AARLaw to consult.
Does a Collection Attorney Only Work for Creditors?
No. A Collection Attorney may work for creditors or debtors, though they are more often hired by creditors.
When debtors hire us, the goal is most commonly to protect what few assets remain during bankruptcy.
Why Choose AARLaw for Collections
Collections can be ugly business; it must be done, but there is always the potential to lose customers. Or, it can be a necessary, even profitable part of your business. At AARLaw, we work with your customers so that they can pay off their debts without feeling like you don’t care.
Our goal is to get the money without having to enter court, but if we must, we are ready for that as well. AARLaw. Because collections must go on.
If you need an expert in Collections, contact us now.