"Collections" is the process by which creditors attempt to get nonpaying debtors to pay the money they owe. There are a large number of laws in Rainbow City, Alabama governing the tactics that collection agencies can and cannot do.
What if I Am Owed Money in Rainbow City, Alabama?
If you are owed money and the debtor refuses to pay, you have some options at your disposal. However, you must tread lightly when it comes to collecting your debts. Creditors and collectors are governed by strict consumer protection rules. Violating these rules can hurt your chances of recovering what you are owed, and even subject you to civil or criminal penalties.
For example, it should go without saying that creditors are not allowed to use threatened or actual violence when trying to collect. They are also not permitted to use abusive language to the debtor, or contact a third party about the debt.
What you can do, however, is send an invoice of the debt to the debtor, along with a firm (but civil) demand for timely payment. If the debt is substantial, you might also want to hire a collection agency in Rainbow City, Alabama. You should make sure that any agency you hire is trustworthy, and has not been cited for violations of the laws governing collections.
What if Someone Is Trying to Collect Money Against Me in Rainbow City, Alabama?
If you truly owe the money being sought, and you are able to pay it, you should of course do so. If the collection caller is behaving civilly, you should do the same. Even if the caller doesn't behave in a civil manner, you should resist the temptation to respond in kind, and ask to speak with a supervisor, or simply end the conversation. Whatever you do, you should never ignore the issue. This will not make the problem go away.
Your best option in Rainbow City, Alabama might be to contact the creditor directly, and try to work out some type of new repayment plan. The sooner you do this, the more receptive to your ideas the creditor is likely to be. If this isn't successful, you can demand that the collectors stop contacting you by phone, and they will typically be obliged to do so. Of course, this doesn't make the debt go away, and you should only take this route if you are prepared to defend against a lawsuit from your creditors, since demanding that they stop contacting you usually leaves them with no other option but to sue.
If you have hired a Rainbow City, Alabama attorney to help you through this process, he or she might advise that you declare bankruptcy. Once this occurs, creditors are legally barred from attempting to collect against the debtor. Of course, this is a major decision, and should not be made lightly.
How Can a Rainbow City, Alabama Collections Attorney Help?
If you think that a collection agency is engaging in unlawful tactics, you should call a local Rainbow City, Alabama attorney, as you might have a claim for damages against the creditor or the collection agency.
Also, if you're considering filing for bankruptcy, a good attorney in Alabama can tell you if this is a good option, and, if it is, help you through the process.