Feb 27, 2021

Posted by in Business | Comments Off on Information About What Happens When A Debt Is Sent To Collections?

Information About What Happens When A Debt Is Sent To Collections?

In Part One of this four part series, we introduced you to the debt collector and the role they play in our lives. In this article we will explore what happens when your debt gets sent to collections. You may have been so happy that you eliminated your debt but what happens next? First, you will probably get a notice from the collections department informing you that you owe X amount of dollars and that they are attempting to recover the money from you through the legal system. You will then be instructed on how to respond to the collection. Have a look at Get More Information for more info on this.

If you do not know anything about your debt in particular, you are going to find it difficult to answer the collections department. Your best option if you receive a notice of debt recovery is to attempt to negotiate with the collection, if at all possible, and to explain to them that you will pay the full amount and ask for nothing in return. Most often, the collectors will ask for a court date, which would require you to go before a judge and give them a clear explanation of your finances. It is very important to keep records of all correspondence since this could be used later on to help you fight the collectors if the situation is not handled properly.

Another possibility is that the collector will visit you at work or at your home and attempt to persuade you to sign a release or other document. This is why you need to remember that what happens when a debt is sent to collections is that you are not your own attorney and you do not have to sign anything. You are under no legal obligation to do anything and if you are being pressured, it is best just to walk away. In the end, if you do choose to fight, you may want to consult with an attorney who can help you make sure you stand up for yourself and for your rights. You may also want to check with your local consumer protection agency, to see if there are additional measures that can be taken to stop what happens when a debt is sent to collections.