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 Bay City, Texas that govern collection agencies, and strictly limit the types of tactics they are authorized to engage in.
What if I Am Owed Money in Bay City, Texas?
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.
The law prevents creditors from engaging in any form of violence against the debtor in an attempt to collect. It further 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 considerable, you might also want to hire a collection agency in Bay City, Texas. You should make sure that any agency you hire is dependable, and has not been cited for violations of the rules governing collections.
What if Someone Is Trying to Collect Money Against Me in Bay City, Texas?
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.
Your best option in Bay City, Texas might be to contact the creditor directly, and try to work out some type of new repayment plan. The earlier you do this, the more receptive to your ideas the creditor is likely to be. If this isn't successful, you can demand that the collectors stop contacting you by phone, and they will normally be obliged to do so. Of course, this doesn't make the debt go away, and you should only take this route if you are ready to defend against a lawsuit from your creditors, since demanding that they stop contacting you typically leaves them with no other option but to sue.
If you have retained a Bay City, Texas 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 feasible option, given your individual circumstances.
How Can a Bay City, Texas Collections Attorney Help?
If you think that a collection agency is engaging in illegal tactics, you should call a local Bay City, Texas attorney, as you might have a claim for damages against the creditor or the collection agency.
If you are thinking about applying for bankruptcy, a seasoned lawyer in Texas can help you with that process, too.