Broadly, the term "Collections" refers to the practice of creditors trying to force debtors to pay what they owe. There are various laws and regulations in Mitchell, South Dakota that govern collection agencies, and strictly limit the types of tactics they are authorized to engage in.
What if I Am Owed Money in Mitchell, South Dakota?
If somebody owes you money and is declining to pay, you have many 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.
For example, when trying to collect, creditors are not allowed to use abusive language, contact any third party regarding the debt, and of course they are not allowed to use threats of violence in an attempt to get their money.
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 Mitchell, South Dakota collections agency. If you go this route, it is crucial to make sure that you hire an agency that is dependable, and follows the relevant law to the letter.
What if Someone Is Trying to Collect Money Against Me in Mitchell, South Dakota?
Of course, if you owe money and have the capacity to pay it, you should do so. If the collections caller is behaving amicably, 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.
Fortunately, you have some options in Mitchell, South Dakota. First of all, you should attempt to contact the creditor directly, and see if something can be worked out. If this doesn't work, you can demand that the collection agency stop contacting you by phone. When this happens, they are not authorized to contact you further. This, of course, doesn't make the debt go away, but if the calls are becoming unbearable, it might buy you a little bit of time. Usually, when this happens, the creditor gives up on extra-judicial collections, and files a lawsuit against the debtor.
If you have hired a lawyer in Mitchell, South Dakota, 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 individual case, so you should not do so unless an attorney has reviewed the facts and determined that bankruptcy is a feasible solution.
How Can a Mitchell, South Dakota Collections Attorney Help?
If you believe that the collections agency is engaging in unlawful or abusive activity, you should consult with a local attorney in Mitchell, South Dakota, as you may actually have a claim for damages against the collection agency.
If you are thinking about bankruptcy, a seasoned South Dakota bankrutpcy attorney can help guide you through the process.