"Collections" is the process by which creditors try to get nonpaying debtors to pay the money they owe. There are a huge number of laws in North Little Rock, Arkansas governing the tactics that collection agencies can and cannot do.
What if I Am Owed Money in North Little Rock, Arkansas?
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 specific consumer protection laws. Violating these laws can hurt your chances of recovering what you are owed, and even subject you to civil or criminal penalties.
The law prohibits creditors from engaging in any form of violence against the debtor in an attempt to collect. It also bars them from using abusive language or contacting third parties about the debt owed by the debtor.
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 significant, you might also want to hire a collection agency in North Little Rock, Arkansas. You should make sure that any agency you hire is reputable, and has not been cited for violations of the rules governing collections.
What if Someone Is Trying to Collect Money Against Me in North Little Rock, Arkansas?
Of course, if you owe money and have the capacity to pay it, you should do so. If the collections caller is behaving courteously, you should do the same. In any case, it is never a good idea to ignore the issue, because that will definitely not make it go away.
However, you do have some options in North Little Rock, Arkansas. First of all, you should make an effort to get in direct contact with the creditor, as opposed to the collection agency, and try to work something out. If this fails, you can tell the collections agency to cease calling you, and they usually are obliged to do so. Of course, this doesn't expunge the debt, but it can buy you some time. You should know, however, that when you show that you are not interested in dealing with the creditors or collectors directly, they will usually resort to a lawsuit.
If you have retained a North Little Rock, Arkansas attorney during this process, they might advise that the best course of action is to apply for bankruptcy. This is a major decision, however, and should not be made easily. You should only apply for bankruptcy if an attorney advises you that it is a viable viable option, given your individual circumstances.
How Can a North Little Rock, Arkansas Collections Attorney Help?
If you think that the collection agency is violating the law in its effort to collect, you should probably call a North Little Rock, Arkansas attorney, since such conduct on the part of the creditor may actually give you a claim for damages against it.
If you are thinking about applying for bankruptcy, a seasoned lawyer in Arkansas can help you with that process, too.