The Perks Of Being A Debt Collector
Welcome back to debt collection 101, your beginner’s guide to debt collection. In articles one and two, I wrote about the different types of debt collectors, how debt collectors will locate a consumer, and what they will do when they contact the consumer. In article three I described the strict rules and regulations that debt collectors, particularly third party debt collectors must abide by when they make each phone call.
When A Creditor Tries To Collect Debt
Who exactly is attempting to get me to pay a debt? The Fair Debt Collection Practices Act was written in the 1970s and provided a good amount of protections for consumers. There are strict rules and regulations that a debt collector must abide by, and if any of these regulations are violated, there’s a good chance that you could sue that agency. But what about that friend of yours who owes you five dollars? Do you have to grant them thirty days to refute the claim? Clearly, you do not.
Bankruptcy: Automatic Stay And How It Protects You From Creditors
U.S. Bankruptcy Code imposes something called an automatic stay the moment that a petition for bankruptcy is filed. The automatic stay will typically prevent the enforcement, commencement, or appeal of actions and judgments against a debtor from the creditors they owe money to who are trying to collect these debts incurred prior to the bankruptcy petition. The automatic stay also protects property of the bankruptcy estate itself from collection actions and proceedings.
Different Ways To Collect Debt
The fact of the matter is, the more time that passes between the time the payment was unpaid and the time the customer is contacted, the less likely you are to be given any sort of payment. If you’re serious about making a profit, there are three ways to handle collection on past debt; in house efforts, hiring a collection agency, or taking legal action.