When a person falls far behind on their credit card bills or neglects to satisfy an outstanding debt, their lender or creditor will make multiple attempts to recover the money that is owed to them. If the company is unsuccessful at collecting their money, they may choose to sell the debt to a collection agency or hire an agency to help them recover the unpaid money. Experian defines a collection agency as “a company that is used by lenders and creditors to recover funds that are in default or past due.”
It is important for individuals to understand that not all debt collection agencies purchase unpaid debt right away. some are hired for a specified period of time to attempt to collect the unpaid debt on behalf of the creditor or lender. In other cases, the debt may just be sold to the collection agency “for pennies on the dollar” and the debt collection agency now owns it. Once a debt collection agency gains control over handling a person’s debt, they will make several attempts at recovering the money.
One of those attempts may be to bring an individual with unpaid debt to court.
Although most associate debt collectors with harassing phone calls and endless pieces of mail requesting payment for the unpaid debt, some collection agencies will go as far as suing an individual for the money they owe. When an individual receives notice of a lawsuit, and this is usually done formally by way of being served court documents through a legal process server, the individual must respond. This might mean paying back the debt or going to court to show they are not in the financial situation to pay what is owed.
If an individual fails to respond to the court documents they have been served with, the court may enter a judgment and the person would be required to pay the money they owe back to their lender or the collection agency who purchased the debt.
How can a Tulsa, OK bankruptcy lawyer help an individual who has been sued by a debt collection agency?
If an individual has received notice that one or more debt collection agencies have filed suit against them and they are struggling to make ends meet financially, they can contact a Tulsa, OK bankruptcy lawyer to discuss what their options are in terms of getting their situation under control. Depending on how much debt a person is in and what their financial situation is, a bankruptcy attorney in Tulsa may be able to help them negotiate with creditors to find a way to resolve the unpaid debt rather than file for bankruptcy.
If an individual is being sued by one or more debt collection agencies or even their lender, they should consider contacting the Henson Law Firm, PLLC for legal advice. The bankruptcy lawyers at the Henson Law Firm, PLLC can determine whether an individual would make for a good candidate for bankruptcy or if there are other options they can explore to gain a handle on their unpaid debt.
The Henson Law Firm, PLLC is located at:
601 S. Boulder, Suite 600
Tulsa, OK 74119
*We are a debt relief law firm in Tulsa, Oklahoma.
*We help people file for bankruptcy relief under the Bankruptcy Code.