"Collections" refers broadly to the numerous tools that creditors have at their disposal to receive payment from debtors who are not paying what they owe. There are many Clayton, New Jersey laws and regulations concerning the conduct of collections agencies, and what they can and cannot do in order to collect.
What if I Am Owed Money in Clayton, New Jersey?
If you are owed money and the debtor won't pay, for whatever reason, you are entitled to seek collection by any lawful means. Of course, the means of collection that are considered "lawful" are quite limited. You should be aware of the laws that govern collections before you proceed, as breaking them can hurt your chances of collecting, and even expose you to liability.
For example, when attempting to collect, creditors are not allowed to use abusive language, contact any third party about the debt, and of course they are not allowed to use threats of violence in an attempt to get their money.
Creditors may, however, send written demands for timely payment, along with an invoice that clearly lays out exactly what the debtor owes. If the debt is significant, it might be worth it to hire a Clayton, New Jersey collection agency, which usually gets paid through a percentage of the debt collected. You should make sure, however, that the agency is reputable, and hasn't been cited for violations of consumer protection laws.
What if Someone Is Trying to Collect Money Against Me in Clayton, New Jersey?
If you actually owe the money being sought, and you are able to pay it, you should of course do so. If the collection caller is behaving cordially, you should do the same. Even if the caller doesn't behave in a cordial 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.
Thankfully, you have many options at your disposal in Clayton, New Jersey. First, you should try to contact the creditor directly, and see if some sort of deal can be worked out. If this is unsuccessful, you can tell the collectors to stop contacting you, which may work in some instances. Of course, this doesn't make the debt go away, but it might give you a little bit of breathing room. The collectors will only be allowed to contact you to let you know that they are suing you for the money owed, or that they have stopped attempting to collect the debt.
If you have hired a lawyer in Clayton, New Jersey, they might advise that you file for bankruptcy. Of course, whether or not this is a good idea depends heavily on the facts of your particular case, so you should not do so until an attorney has reviewed the facts and determined that bankruptcy is a viable solution.
How Can a Clayton, New Jersey Collections Attorney Help?
If you think that a collection agency is engaging in abusive tactics, you should call a local Clayton, New Jersey 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 New Jersey can tell you if this is a good option, and, if it is, help you through the process.