What Kind of Lawyers Can Collect Debts?

Picture this: you’re sitting at your desk, staring at a stack of unpaid invoices, medical bills, or credit card debt. Sound familiar? If you’re a business owner, then you’ve probably had a taste of such an experience at least once. A bitter one, I might add. Recovering your own money from debtors suddenly feels like you’re trying to squeeze water from a stone seemingly impossible.

Let’s face it, no business owner ever wants to spend their time chasing down debtors. This precious time is better spent on coming up with innovative ideas, growth opportunities, or even enjoying a rare moment of peace. But then, those unpaid bills won’t magically sort themselves out, right?

Now, before you consider writing off those stubborn debts as a lost cause, hold that thought! The solution to this conundrum may be taking a different approach by adding some “legal persuasion.” That’s right, I’m talking about bringing in the big guns hiring an attorney who specializes in debt collection.

But wait, you might be thinking, “Aren’t all lawyers the same?” No, they are not. The title “lawyer” is just an umbrella name for legal representations. Layers have different specialties. So, just as you wouldn’t ask a heart surgeon to fix your car, you wouldn’t want just any lawyer handling your debt collection.

That’s why today I’ll be sharing a round-up of lawyers who can collect debts!

What Kind of Lawyers Can Collect Debts?

It’s time to discuss the different kinds of lawyers or law firms you can work with to recover your debts. Each type brings their own unique set of skills to the table. Let’s check them out below:

Consumer Collection Attorneys

Collecting debts is not limited only to those involving your business. In fact, recovering your personal debts is just as important as that of your business. After all, your personal life can directly or indirectly influence your business. So, consumer collection attorneys are your go-to legal experts if a debtor is ghosting you, ignoring your phone calls, and refusing to pay back their personal loans.

These consumer debt experts are well-versed in consumer laws, including federal laws like the Fair Debt Collection Practices Act (FDCPA). They’ve also mastered the art of strategic and productive negotiations to find what works for both parties. They also know how to compel debtors to pay up without breaking the law. In addition, they can be very assertive yet persuasive.

How they’re authorized:

• They must be licensed to practice law in their state.
• Many belong to associations like the National Creditors Bar Association, which provides additional training and resources.

Commercial Collection Attorneys

This class of lawyers is the heavy hitter when it comes to business-to-business debts. They are the ones business owners run to help keep their business alive by recovering amounts owed. So, if you’re chasing down payments from other companies, these lawyers are your best friends.

Why are they the ideal debt collector for business-to-business debts? You want someone who understands the ins and outs of business contracts and commercial law like the back of their hands. Well, that’s exactly what commercial debt collection lawyers are trained for. They know how to deal with corporate entities and their legal teams. They also have a good grasp of all the legal collections laws and regulations.

How they’re authorized:

• Like all lawyers, they must be licensed in their state.
• Many have additional certifications in commercial law or are members of organizations like the Commercial Law League of America.

Bankruptcy Attorneys

Some debtors like to play a fast one on their creditors by exploiting a “get out of jail free” card. I’m talking about bankruptcy. You see, there’s a legal stipulation protecting debtors who declare bankruptcy. In such cases, creditors may be forced to forgo their amounts owed.

So, it’s no surprise that some sneaky debtors try to exploit this clause by filing for bankruptcy. If you ever encounter such a problem, these are the lawyers you want in your corner. Once beaten, twice shy, right?

Bankruptcy lawyers are experts in navigating the complex world of bankruptcy law and credit reporting. They also know how to protect your interests as a creditor during bankruptcy proceedings. They can also help you understand your rights and options when a debtor files for bankruptcy.

How they’re authorized:

• They must be licensed attorneys and often have special certifications in bankruptcy law.
• Many are admitted to practice in federal bankruptcy courts.

Foreclosure Attorneys

If you’re in the mortgage or real estate business, these debt collection attorneys are your specialists for when homeowners default on their loans. You need their counsel to avoid taking any drastic, illegal actions in pursuit of the amount owed, which could land you in trouble. This may also include getting slapped with heavy fines by the court, prison sentencing, or even losing ownership of your home. 

You can trust foreclosure attorneys because they’re well-versed in real estate law. They understand the different regulations governing foreclosures in each state. You also won’t need to worry about getting your case thrown out because of irregularities or errors. Foreclosure lawyers handle the entire foreclosure and collection process, from filing the initial complaint or demand letters to the final sale of the property.

How they’re authorized:

• They must be licensed attorneys in their state.
• Many have additional certifications in real estate law.

General Practice Attorneys with Debt Collection Experience

You could call them the jacks-of-all-trades in the legal world. While they might not specialize solely in debt collection, they often have experience in this area as part of their broader practice.

But why should you go for a generalist instead of a specialist? Well, thanks to their years of experience, they can handle a variety of debt types, from personal to commercial. This is particularly of great benefit for smaller businesses or those with diverse debt collection needs. Besides, general practice attorneys don’t necessarily work alone. They often have a network of specialists they can consult for more complex cases.

How they’re authorized:

• They’re licensed attorneys in their state.
• Their experience in debt collection often comes from years of general practice.

Whether you’re dealing with stubborn consumers, elusive businesses, or complex bankruptcies, there’s a legal expert out there ready to champion your cause.

Having to struggle or even lose sleep just to recover your own money from debtors is no fun. Fortunately, all hope is not lost yet. You can hire a debt collection agency or lawyer to recover your money. However, if you don’t want to lose twice, you must hire right.

Deciding on which is the right lawyer to fight your battles shouldn’t be based solely on their diplomas. There are also other key things to consider. Does he or she understand your unique challenges? Does he or she have a reputation for getting the job done while still being compliant?

Thankfully, there’s a platform where you can find the crème-de-la-crème of the debt collection world. A community of collection experts who know just the right buttons to press to bring smiles to the faces of creditors. Even better, these experts are always eager to share their ideas, experiences, and strategies with the rest of the community. I’m talking about Connection2Collections!

There’s no restriction as to who can join Connection2Collections. Individuals trying to find their feet in the industry can gain valuable insights and strategies to stand out. Collection agency owners can find top talents and the latest industry trends to stay ahead of the curve. Even creditors can learn more about how the collection industry will benefit them. Clearly, the perks are limitless. So, what are you waiting for? See you in the winner’s circle, which is Connection2Collections!