- February 27, 2023
- Posted by: Taurus Collections
- Category: Blog
Your bill goes into collections when you fail to pay it within a certain period of time. This usually happens after you’ve received multiple warnings from your creditor. Once your bill is in collections, you’ll be contacted by a collection agency, which will try to collect the outstanding amount. If you still don’t pay, the debt may be sold to a third-party collection agency.
At this point, you may be subject to legal action, including wage garnishment or seizure of property. It’s important to understand what happens when your bill goes into collections so that you can take steps to avoid it. Read on to learn more.
When you don’t pay your bills, the creditor will eventually send your account to a collection agency
If you don’t pay your debts, the creditor may eventually use a debt recovery collection agency to collect what is owed. Upon notification of debt repayment, an insolvency service in Chester will typically contact you via letter, telephone or email – depending on their strategy to recover the debt amount. It is important that you respond quickly and act accordingly to avoid any further debt collection procedures. Once your account has been sent to a debt collection agency, they are allowed by law to pursue the outstanding balance. This may include regular phone calls, home visits and other methods used to compound the pressure into repayment.
The collection agency will then try to collect the debt from you
When your bill goes into collections, commercial debt recovery agents will put significant effort into trying to contact you in order to collect the debt. Depending on how much is owed, the agency could attempt to call you, send letters and emails or even visit you in person. It’s important to be aware of these strategies, so that if and when any of them takes place, you are aware of the situation. Those who take the time to research commercial debt recovery practices will be better equipped should they need to speak directly with the collection agency.
If you still don’t pay, the collection agency may file a lawsuit against you
Neglecting to pay your outstanding bills can have consequences that may include the debt being sent to collections. If an agreement on how to pay back the debt isn’t reached with the collection agency, it can result in legal action being taken against you. The agency will then go through legal processes that could involve appearing in court and a possible judgment from the judge. This judgment could lead to wage garnishment, liens on your property or require bank account attachment. As soon as possible, address any unpaid bills and make arrangements with the collection agency before any of these drastic measures are taken to get their money back.
If the lawsuit is successful, the court will order you to pay the debt plus interest and fees
If your debt goes into collections and legal proceedings are successful, the court may order you to pay not only the amount of the debt, but also any interest or fees that have accumulated. This means that the total balance due is likely much greater than what you originally owed. In such cases, it can be difficult to settle with creditors, who may be unwilling to accept a lower amount than what was ordered by the court. However, if you take the time to review all of your options and have a good understanding of what is realistically available, working out an acceptable agreement can still be possible.
If you don’t pay, the collection agency can garnish your wages or put a lien on your property
If you find yourself in a situation where you cannot pay your bills due to the financial burden, it is important to know the consequences. When a bill goes into collections, the collection agency has the legal authority to collect the debt from you through various means. This could include garnishing your wages or putting a lien on your property; both are serious threats. It’s essential that you understand these options and take immediate action towards managing and paying off debt in order to avoid having your finances heavily impacted by such rigorous methods of collecting debt.
Collection agencies are regulated by UK laws, so make sure you know your rights before dealing with one
Dealing with a collection agency can be a stressful experience – especially if you don’t know your rights or are unaware of the legal regulations concerning them. It’s important to be informed before dealing with a collection agency because they must abide by the laws that protect consumers from being unfairly treated. This includes well-defined limits on the amount of contact they are allowed to have with you, payment terms and more. Knowing your rights ensures that you receive fair treatment during the process, so make sure you stay up to date on any laws governing collections agencies in your area.
Collecting business debt can be a tricky process, but with the right steps and strategies in place, you’ll be able to ensure that you’re getting your money in a timely and orderly fashion. Taurus Collections (UK) Ltd. can be your one-stop destination if you want to successfully boost your odds of collecting debts. Use our Late Payment Calculator to calculate your outstanding credit amount. We help our clients with certain debt collection services that include:
● Business financing
● Outsourced credit control
● UK & international credit checking
● No win-No fee debt recovery