Collection Law Attorney Terms
Collection law attorneys help clients to recover debts and navigate through financial processes, like bankruptcy. They are experts on areas of civil law dealing with debt collection practices and may work directly for a company or out of a debt collection firm. The following are a few common terms used to describe specialties within collections law that attorneys may handle.
Consumer Collections - When consumers default on debt, businesses may require the services of a collections attorney or firm to recover the money. Collection agencies send notices and make calls on behalf of a company, and negotiate settlements and payment plans. A lawyer can often arrange wage garnishments or place liens on property.
Business Collections – When businesses have disputes over contracts and payments, a collections attorney can represent them in civil court. They can also work to recover commercial debts and negotiate payment terms before a civil suit becomes necessary.
International Collections – International collections efforts can become complicated because each country has its own laws governing collections firms. Lawyers with experience dealing with international collections can make sure a business follows all local laws when attempting to recover money from international clients. Often, firms work on commission, collecting a fee only if the debt is repaid.
Bankruptcy – Civil law attorneys can take on bankruptcy cases for both individual and business clients. If a client cannot repay their debts, an attorney will help them file for bankruptcy so they can either liquidize their assets or develop a repayment plan to handle their debts.
Cease and Desist - If an individual wants collection agencies to stop contacting them, a lawyer can help a debtor send a cease and desist order. This will stop them from calling. When a cease and desist letter is received, a collections agency must stop contacting a debtor.