Can a creditor collect a secured and unsecured debt?
If you're collecting a secured debt, you probably need legal help. You shouldn't try to repossess a car, for instance, unless you fully understand the law in this area. Hiring a reputable and bonded repo company is one option. Another is to hire an attorney and use the courts. Likewise, if you're trying to foreclose on a mortgage, you'll need the expert assistance of an attorney.
You can turn over an unsecured debt to a collection agency, which normally asks for 30 to 50 percent of the collected debt and expenses. But, if you are owed a lot and you believe the debt is collectible, hire an attorney.
Other Alabama Collections-Creditors Rights FAQs
-
What is a creditor?
A creditor is any person or organization that extends credit regularly to others. -
How may a creditor contact you?
A creditor may contact you in person, by mail, telephone, telegram or fax. However, a creditor may not contact you at inconvenient times or places, such as before 8 … more -
Can a creditor take legal action on a consumer?
In case of any action to enforce an interest in real property securing the consumer's obligation, the creditor can bring action only in a judicial district or similar … more -
Can a creditor use mediation?
Yes, mediation resolves disputes better. Mediation costs less, takes less time, and you don't have to go to court. -
Can a creditor contact anyone else about your debt?
If you have an attorney, the creditor must contact the attorney, rather than you. If you do not have an attorney, a creditor may contact other people, but only to find … more
Collections-Creditors Rights Sub-categories
