Bill Collection: Lawyer’s Point Of View
Lawyers are bunch of individuals we love to hate. They are cunning, smart and the ones we approach in times of trouble. In the practice of bill collection, I think no one is as well-versed with its issues as attorneys. They know the twist and turns, the techniques and strategies in bill collection. The knowledge lawyers’ impart is priceless. Here are some of the tools used by lawyers to collect debts; read and understand carefully.
The primary tool used by lawyers in bill collection is the Attorney Demand Letter. This letter is just like any of the demand letters sent by the collection agency or creditors. Nevertheless, Attorney Demand Letter possesses a certain degree of authority and intimidation. When a debtor received such letter, he/she is fully-aware that the matter is of serious consideration. The Attorney Demand Letter is also in compliance to particular state statutes and a way of recovering attorney fees. It also strengthens the credibility of the creditor. Sending of Attorney Demand Lawyer gives the creditor a fair share of power against the debtor. It means that the creditor is serious in filing specific legal actions against the person involved if he/she refuses to pay. It spells the difference between a bluff and legal consequence.
Filing of lawsuit is another tool used by lawyers in the collection of debts. It involves drafting of the complaint, filing of the complaint to the Court, and servicing the complaint to the debtor. The debtor is then given a certain period of time to respond to the complaint filed against him/her. According to the General Sessions of the Court, no formal written answer is required from the debtor and the matter will be heard in the court within 10 to 15 days of the debtor being served. The debtors have the choice to either admit the debt (shortening the process) or deny the debt thus trial will be scheduled. In most cases, debtors are unequipped to provide the necessary legal action in response to the complaint filed. Those who attempt to represent themselves in the court do not stand a chance against these “sharks”.
Once the decision is given regarding the matter, lawyers can use their favorite bill collection tool- garnishment. Garnishment is used to recover the money through the debtor’s bank account or wages. Lawyers may attempt to freeze the assets and money of the debtor in the bank or get a specific amount in his/her paycheck to finance the debt. The computation of the deductions of the debtor’s money income is based on the amount the debtor earns, number of children (if any), and the state statutory exemptions.
If garnishment fails there is still the Writ of Execution, wherein the lawyer may request the sheriff to seize certain properties of the debtor and sell it through public auction to satisfy the debt. Other tools are also available for the lawyers to effectively collect the debt. Thus it is advised that debtors should watch out for these individuals. Hard-earned collection by a (debt collection) agency may just be easy money for skilled lawyers.
