How The Collection Process Works When Your Accounts Are Delinquent
Falling behind on credit card payments, personal loans or other debt will set off a process that begins with receiving late notices and late fees charged to the account. After payment is late by 30 days, creditors will begin calling and sending additional notices. They’ll also file reports with credit agencies to inform them that you’re late on payment.
Should a debt enter the area of being four months past due, creditors contact a collection agency and take the debt as a loss. Efforts to contact them will be referred to the collection agency. Phone calls, letters, threats of wage garnishment and lawsuits are all used by these agencies.
The collection agencies will attempt to find out as much about your financial situation as possible in order to determine what legal action they can take against you. It is crucial at this point that you retain a bankruptcy lawyer to help protect your rights.
Should a lawsuit be filed and a judgment entered, your bank account and paycheck could be garnished. Engel Law Group, P.S., is pleased to assist those in need of legal representation when facing collection actions. We work hard for our clients and have successfully helped numerous clients resolve their debt problems.
Work With Our Dallas Bankruptcy Law Firm
Delinquent accounts can adversely affect your credit rating, and they can affect future plans like applying for a mortgage or a bank loan. If you’re beginning to feel the effects of delinquency, contact a Dallas bankruptcy lawyer at Engel Law Group, P.S. Our firm believes in providing each client with dedicated, caring legal counsel, and we will work with you to create a solution that solves financial issues and gets you back on your feet.
Contact Engel Law Group, P.S., today if you have collection actions being taken against you by your creditors.