Broadly, the term "Collections" refers to the practice of creditors trying to force debtors to pay what they owe. There are many laws and regulations in Sparta, Tennessee that govern collection agencies, and strictly limit the types of tactics they are allowed to engage in.
What if I Am Owed Money in Sparta, Tennessee?
If somebody owes you money and is declining to pay, you have several 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 Sparta, Tennessee collections agency. If you go this route, it is crucial to make sure that you hire an agency that is reputable, and follows the relevant law to the letter.
What if Someone Is Trying to Collect Money Against Me in Sparta, Tennessee?
If you actually owe the money that is being sought, and can afford to pay it, you should do so. If the collection caller is behaving in a polite manner, you should try to do the same. In any case, the worst thing you can do is ignore the issue hoping that it will go away. It won't.
However, you do have some options in Sparta, Tennessee. 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 the services of a Sparta, Tennessee attorney, they may advise that you declare bankruptcy, depending on your particular situation. In any case, you shouldn't consider bankruptcy before weighing other options, and discussing the matter with an attorney.
How Can a Sparta, Tennessee 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 Sparta, Tennessee, as you may actually have a claim for damages against the collection agency.
If you are thinking about applying for bankruptcy, a seasoned lawyer in Tennessee can help you with that process, too.