How Our Debt Collection Lawyer Can Help

If you are struggling to collect debts owed to you or your business, our Warren, MI debt collection lawyer can help you utilize the legal system to collect your debts. We can help you pursue the collection of your debts in a timely and efficient manner, while ensuring that you adhere to the Fair Debt Collection Practices Act. 

The process of collecting a debt owed to you can be a sensitive and complicated task, but having an experienced lawyer on your side can help make the process smoother. To discover exactly how we can assist you with collecting your debt, contact our team at Gudeman & Associates, P.C. today.

Our Warren debt collection lawyer has vast knowledge of the rules and guidelines that govern the process of debt collection in the state of Michigan. They know which procedures of collection are available to you and can advise you on the best steps to take for your specific situation.

A lawyer will first attempt to contact the debtor and negotiate payment without the need for litigation or other legal procedures. The presence of a lawyer may cause the debtor to understand the gravity of the need for them to pay their debt. A lawyer can let the debtor know that if payment is not made, legal action will be taken to recover the amount owed.

Steps to Take If Negotiation Fails

Unlike a debt collection agency, a lawyer can also bring a lawsuit against the debtor if this becomes necessary in order to collect the debt. While this is not the first course of action taken, and other, simpler methods of negotiation are beneficial for both you as the creditor and for the debtor, if all else fails, litigation may be the best method available to recover debt. If this is the case, our Warren debt collection lawyer will help you take the debtor to court in pursuit of the amount that you are owed.

A debt collection lawyer has many methods to help you collect your debt. From pre-suit collections and lawsuits to enforcing judgment liens and property seizure, our team can assist you every step of the way. We will draft documents, communicate with the debtor, courts, and other parties involved, and represent you and your interests throughout the entire process of collecting your debt.

The Benefit of Legal Representation

In the state of Michigan, there is a limitation of six years from the last payment to collect debt. This can be lengthened by obtaining a judgment lien. A judgment lien provides an indefinite amount of time to pursue collection of debt as long as the lien is renewed every ten years. A lawyer can help you obtain a judgment lien if needed for your case. Contacting a lawyer as soon as possible can help ensure that you recover the full amount that you are owed within the time limit.

We understand how complicated the process of debt collection can be, and it is our job to take the burden off of your shoulders and work hard to ensure you receive what you are owed. If you are seeking legal aid in recovering unpaid debt, schedule a consultation with Gudeman & Associates, P.C. today.

The Impact of Bankruptcy on Creditors

Our Warren, MI debt collection lawyer recognizes that debt collection can be a complex and often frustrating process, particularly when debtors resort to filing for bankruptcy. Bankruptcy can substantially affect the ability of creditors to collect outstanding debts owed to them. 

Understanding the Two Main Types of Bankruptcy

In Michigan, as in the rest of the United States, bankruptcy law primarily revolves around two types of bankruptcy: Chapter 7 and Chapter 13. Each type has unique implications for creditors.

Chapter 7 Bankruptcy and The Automatic Stay

When a debtor files for Chapter 7 bankruptcy, an automatic stay goes into effect immediately. This stay is a crucial element in bankruptcy law that temporarily halts all debt collection efforts initiated by creditors. Creditors are prohibited from pursuing any collection actions during the automatic stay period. The goal of this provision is to give debtors a brief respite from creditor actions to allow for the orderly liquidation of their non-exempt assets and the subsequent distribution of the proceeds to creditors.

Chapter 7 Impact on Creditors

The impact of Chapter 7 bankruptcy on creditors can be significant, depending on the debtor’s financial situation. If the debtor’s assets are insufficient to cover the outstanding debts, unsecured creditors often find themselves at a disadvantage. In such cases, they may receive only a fraction of what they are owed or, in some instances, nothing at all.

Once the bankruptcy process concludes and the debtor receives a discharge, the discharged debts are legally forgiven. Creditors cannot resume collection efforts for those debts. 

Chapter 13 Bankruptcy

Chapter 13 bankruptcy operates quite differently from Chapter 7. Instead of liquidating assets to repay creditors, debtors under Chapter 13 create a court-approved repayment plan to address their debts over a structured period, typically three to five years. The plan outlines how creditors will be paid and what percentage of the debt they will receive.

Chapter 13 Impact on Creditors

As a Warren debt collection lawyer knows, under a Chapter 13 plan, creditors usually have a better chance of recovering a portion of their debts compared to Chapter 7 cases. The repayment plan dictates the distribution of payments to creditors based on their priority. Secured creditors, such as mortgage lenders or car loan providers, are typically paid first. Unsecured creditors, including credit card companies, medical bill collectors, and personal loan lenders, may receive partial payment based on the debtor’s disposable income.

Once the debtor successfully completes the Chapter 13 repayment plan, any remaining eligible unsecured debts are discharged. Creditors cannot pursue further collection efforts for those discharged debts. However, creditors must diligently monitor the debtor’s progress throughout the repayment period to ensure compliance with the plan and take appropriate action if necessary.

Contact Our Team For Debt Collection Help

At Gudeman & Associates, P.C., our dedicated team of attorneys possesses extensive knowledge of bankruptcy laws and strategies for creditors in Michigan. We can provide you with expert guidance on how to navigate the impact of bankruptcy on your ability to collect debts. Contact us today to discuss your specific situation and develop a comprehensive strategy to protect your interests. Don’t let bankruptcy leave you in the dark; let us be your trusted partner in pursuing debt collection solutions. Speak with our Warren debt collection lawyer now.