The rights of creditors to seek payment of debt

The rights of creditors to seek payment of debt

| Mar 24, 2021 | Consumer Debt Collection

Companies are entitled to payment when a California customer fails to pay for something purchased on credit. The process of actually securing payment from an unwilling customer can be complex, and it may be necessary for a creditor to seek the assistance of a debt collection agency or other professional experienced in this process. Any creditor or company has the right to pursue whatever legal means are available to seek payment of debt.

Options available

There are several options available to a creditor that wants to seek payment of a debt. The ideal approach is to carefully evaluate the situation and determine which would be the most effective way forward. Some of the potential collection options include:

  • Agreeing to a payment plan with the customer
  • Hiring the services of a debt collection agency
  • Agreeing to the terms of a secured transaction with the debtor
  • Putting a lien against the debtor’s property until the debt is paid
  • Filing a lawsuit against the debtor
  • Seeking a judgment with the court

Any of these could be a reasonable way to secure payment on outstanding balances. A creditor will want to choose the option that allows for the fastest payment and highest chance of success for the individual situation.

California creditors

California creditors may need assistance with the collection of certain debts. Prompt collection is often key to the financial success and stability of a creditor or company. This is why it is helpful to pursue payment with the assistance of a collections attorney who can assist with every step of the process.