Some companies attempting to collect on debts have a relatively straightforward process ahead of them. The people or businesses who owe money follow a payment plan and consistently reduce what they owe by sending monthly payments. Other times, creditors may have a very difficult time collecting on a debt. Some people go to extreme lengths in an attempt to...
Most people are eager to make good on their financial obligations. They communicate with their creditors, follow payment plans and provide advance notice if they might miss a payment or send a payment in late. Unfortunately, there are some people who take on debt without a sincere intent to fulfill their financial obligations. People sometimes try to avoid...
For some companies, collecting what they’re due proves to be a challenge of patience and sometimes logistics. In some cases, they have to turn to the courts to order payments. Enforcement of these orders may involve methods such as bank levies and garnishments. A garnishment is a court order for a certain portion of future deposits to be sent to the...
Getting the money you’re due can be challenging, especially when debtors ignore the invoices you send. Once you realize that ordinary approaches aren’t going to produce the results you want, you may decide to move forward with more pointed collection attempts. One of the first steps in this process involves crafting and sending a demand letter. This is a...
Forensic accountants often serve as crucial resources for debt collectors. They provide specialized expertise that extends beyond traditional accounting practices. Their role is to provide a detailed and systematic examination of financial records to uncover facts and insights beneficial for debt collection. The information gathered is particularly...
Debt collectors have a challenging job because they depend on collecting money from people who might be actively avoiding their debts. The complexity of this job requires them to employ various methods to be able to collect effectively. Understanding a few different types of debtors whom they might come across may help debt collectors to enjoy more...
The legal system is slightly different in every state. Statutes and court precedents are slightly different from one jurisdiction to another. Some people try to use that fact to their advantage when they face legal consequences for their actions or choices. They might intentionally relocate across state lines in response to legal troubles in one location....
Debt collection can be a very difficult process for a business. Most companies do not have a specialized debt collection department, and even those that do may only have a few employees working in that area. The more complex a situation becomes, the more likely the company is to require outside help. Oftentimes, businesses owed money by other organizations...
According to the Consumer Finance Protection Bureau (CFPB), medical debt is the most frequent kind of collection actions that appears on consumer credit reports. A whopping 57% of collections of this kind are related to medical debt. Yet, debt collection activity related to overdue medical bills declined by a truly significant 37% between 2018 and 2022. ...
In California, the statute of limitations on debts is a critical legal boundary that debt collectors must be acutely aware of. This period dictates when a creditor or collector can legally sue to collect a debt. The statute of limitations on debts in California varies depending on the type of debt in question. Understanding this limitation is essential for...