An outside source like a collection agency or a debt collection attorney is a “third party” debt collector. This is an especially important issue when the accounting department is facing a reduction in its budget. As a small business owner, it’s especially important to me to be kept in the loop. Professionals to the bone. It is important that any organisation involved in recovering debt is aware of its legal obligations. This debt collection glossary will help you understand the most important terms and phrases that you and your debt collection attorney may discuss: Bankruptcy Code– A set of Federal laws that allow individuals and corporations to request relief from debts they cannot repay. ALL RIGHTS RESERVED. Creditors are encouraged to call the consumer to confirm their identity before providing further credit. Debt collection takes place when creditors and collectors seek to secure payment from consumers or businesses who are legally bound to pay or to repay money they owe. They kept us up to date as things developed. If the consumer defaults, creditors can then collect the lien and liquidate it to pay off the debt. sight, inspect or recover a security interest. If your business needs help with out-of-control unpaid invoices, do not let unfamiliar terminology paralyze you. Sometimes referred to as wage garnishment. P.O. ... Should the credit agreement be a secured credit agreement, meaning for a house or car, the creditor will attach the property and sell same on auction to recover the outstanding debt. This web site is designed for general information only. Debt collection is a creditor’s attempt to recover consumer credit and loans that have not been paid back by a customer. This is distinct from secondary accounts, from which other agencies or attorneys have already tried to collect. Through the years, they have collected on debts I’d given up hope of ever seeing a dime on. This helped put me at ease and feel I had a say in what was happening with my case. You should treat debtors and third parties with fairness, respect and courtesy. Attorney Advertising. Ultimately, the result should be more collected funds in relation to the collection effort expended. You should never harass or coerce them, treat them unconscionably or mislead them about the nature of their debt, their legal obligations or any possible outcomes if the debt is not paid. I highly recommend them if you need a collections attorney.”, “McHughes Law Firm handled our asset recovery when we were having trouble with a vendor who refused to deliver our goods, and they were amazing! This field is for validation purposes and should be left unchanged.