"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 La Habra, California governing the tactics that collection agencies can and cannot do.
What if I Am Owed Money in La Habra, California?
If somebody owes you money and is declining to pay, you have various options at your disposal. However, in doing so, you will be governed by very specific consumer protection rules that govern the collection of debts. Violating these rules can hurt your chances at effectively collecting, and might even expose you to civil liability.
As an example, when attempting to collect, creditors may not use abusive language, contact third parties regarding the debt, or use violence or threats of violence.
One thing you are allowed to do is send a written demand for immediate payment. The demand should lay out the precise amount you believe is owed, so the debtor cannot plausibly claim ignorance of that fact. If a lot of money is involved, it might be wise to hire a La Habra, California collections agency. If you go this route, it is important to make sure that you hire an agency that is trustworthy, and follows the relevant law to the letter.
What if Someone Is Trying to Collect Money Against Me in La Habra, California?
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 courteously, you should do the same. Even if the caller doesn't behave in a polite manner, you should resist the urge 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.
Luckily, you have some options in La Habra, California. First of all, you should try to directly contact the creditor, and see if some revised payment plan can be worked out. If this doesn't work, you can ask the collectors to stop contacting you by phone, and they will typically be obliged to do so. Of course, this doesn't make the debt go away, but it may give you some time to collect yourself and prepare a legal defense. Once this happens, the collection agency can only contact you to inform you that it intends to sue you for the debt owed.
If you have hired a lawyer in La Habra, California, they might advise that you apply for bankruptcy. Of course, whether or not this is a good idea depends strongly on the facts of your specific case, so you should not do so unless an attorney has reviewed the facts and determined that bankruptcy is a possible solution.
How Can a La Habra, California Collections Attorney Help?
If you think that the collection agency is violating the law in its effort to collect, you should probably call a La Habra, California attorney, since such actions 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 California can help you with that process, too.