Collection Agencies
Collection agencies are businesses that capitalize on other peoples’ debts. Their sole purpose is to collect money from debtors and turn it over to creditors; however, they take a certain percentage from the money they receive. Frequently, credit agencies who have not received payments owed to them, despite several billing attempts, will turn the debtor’s name over to a collection agency, which will then take over the effort to receive payment.
If you are being bombarded by collection agencies and or experiencing creditor harassment, yet you are unable to repay what you owe, you might want to consider filing for bankruptcy. To learn about the benefits of filing for bankruptcy, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. today. Call 561-353-2800 today to schedule your free initial consultation.
The Transfer of Debt
When a credit company does not receive payments owed to them, they will try repeatedly to bill the debtor. If after several attempts the credit agency still does not receive what they are owed, they will turn over the debt to another branch of their company that specializes in collecting debts. Because this agency is still connected with the credit company, and they both wish to retain a positive relationship with their customers, their collection practices will usually be relatively polite.
Unfortunately, if these first two attempts do not result in the payment they are owed, a credit company can transfer the debt to a third party collection agency. Generally, the collection agency will purchase the debt from the credit company for a portion of the outstanding debt. The remaining amount is marked off as a loss for the credit company; however, the collection agency may still pursue the entire amount owed by the debtor.
Contact Us
If you are being harassed by a collection agency or aggressive credit company, you may have the right to file a claim. Contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. at 561-353-2800 to discuss your case with a professional and determine your legal options.
