Rockville Collections Attorney
Collections Lawyer
Collections are the procedures utilized by a creditor to obtain money that is owed by a debtor. Often, it refers to the process of collecting money after the parties have already been to court, although this is not always the case, and a collections attorney Rockville, MD trusts can help you.
If the parties have already been to court and one side has received a judgment, that document can be filed with different courts and it will become a lien against any real estate owned by the judgment debtor. As a lien, it will also collect interest at the statutory rate (10% per annum) in Maryland. (For many years the statutory rate was well below the prevailing rates of interest and inflation, but recently it has been the other way around. No banks are paying 10% interest on deposits or CDs. The interest on judgments is good.) If the property is sold, the title company will have to pay off the lien before a new owner can take over the property and have clean title.
Many times a judgment creditor will not know where the assets of the debtor are located. For these situations, the law provides for discovery in aid of execution. This is a deposition where the debtor is called in to answer questions under oath with a court reporter recording his or her answers. Usually, the discovering attorney will require the debtor to bring with him certain documents. Typically, this will include pay stubs (to see where he works), bank statements (to see where his money is kept), tax returns (to see all sources of income), utility bills (to see whose name they are in), car titles (perhaps to attach them), and other financial documents.
There are restrictions on how aggressive a party can be in collecting a debt. Federal law prohibits contacting neighbors and friends, calling at odd hours (early or late), threatening and abusive behavior, and for a debt collector to fail to disclose his or her purpose.
If assets are discovered, then the law will often allow a creditor to seize them. For example, if a debtor has a bank account then the creditor can ask the court to issue a garnishment of the account. The court will order the bank to freeze the account and disclose how much money is being held on deposit. Once this is done, the debtor may have the option to unlock the account if a certain threshold is not met. In Maryland, the first $7000 in a bank is exempt from execution or garnishment. However, any amounts over this amount can be seized and paid to the creditor. Likewise, if a debtor is employed at a job, the creditor can seek a wage garnishment from the court. This is an order directed to the employer directing him or her to withhold a certain amount of money from each paycheck to help pay off the judgment. Again, there are limits to how much of a person’s paycheck can be garnished under both state and federal law.
Collecting on a debt can be time-consuming and frustrating, but in the end if the money is there the law will allow a creditor to obtain it. Let an attorney from Daniel J. Wright help. Call us today!
Understanding Debt Collection Practices And How A Lawyer Can Help
Handling the complexities of debt collection can be a daunting task, especially when facing persistent creditors. At The Law Office of Daniel J. Wright, a Rockville, MD collections attorney, we understand the stress and uncertainty that accompany these challenges. Our team is dedicated to providing clear, comprehensive guidance to help individuals and businesses understand their rights and options.
The Landscape Of Debt Collection
Debt collection is a process that involves pursuing payments on debts owed by individuals or businesses. While creditors have the right to collect what is owed to them, there are specific laws and regulations in place to protect consumers from unfair practices. Understanding these rules is crucial in ensuring that your rights are not infringed upon during the debt collection process.
Legal Protections For Consumers
There are several laws designed to protect consumers in the debt collection process. These include the Fair Debt Collection Practices Act (FDCPA), which sets standards for how collectors can contact and interact with debtors. Knowing these protections can help you recognize when a collector is stepping over the line and what actions you can take in response.
How A Collections Attorney Can Assist
A Rockville collections attorney plays a pivotal role in guiding clients through the intricacies of debt collection laws. They can offer invaluable advice on how to handle communication with creditors, negotiate payment plans, and, if necessary, represent you in court. Their legal knowledge is particularly beneficial in instances where debt collectors violate your rights.
Challenging Unfair Collection Practices
Unfortunately, some debt collectors may engage in unfair or aggressive tactics. If you’re facing harassment, misrepresentation, or other unlawful practices, it’s essential to have a legal advocate on your side. A knowledgeable attorney can help you challenge these practices, ensuring that your rights are upheld and your dignity is maintained.
Negotiating Debt Settlements
In many cases, debt settlement can be a viable solution. An experienced attorney can negotiate with creditors to potentially reduce the amount owed or create a more manageable payment plan. This not only alleviates financial pressure but also helps in safeguarding your credit score.
Preventing Legal Missteps
The world of debt collection is fraught with legal intricacies. Without proper guidance, it’s easy to make mistakes that can worsen your situation. By working with a legal professional, you can avoid common pitfalls and make informed decisions that are in your best interest.
Empowering You With Legal Experience
Empowerment is a key aspect of dealing with debt collection, and that’s where legal knowledge and guidance comes into play. With a deep understanding of the laws and regulations governing debt collection, a qualified attorney can turn the tide in your favor. They provide not just legal representation but also education, ensuring you fully comprehend your rights and the implications of every decision. This empowerment enables you to make choices from a position of strength and confidence. By partnering with a knowledgeable attorney, you’re equipped with the tools and information needed to effectively manage and resolve your debt collection issues, ultimately leading to a more positive and controlled financial future.
At the Law Office of Daniel J. Wright, we are committed to helping our clients navigate the challenging landscape of debt collection. As a trusted Rockville collections attorney, our approach is centered around offering professional, personalized advice tailored to each client’s unique situation. If you’re struggling with debt collection issues, remember you’re not alone. We invite you to reach out to us for a consultation, where we can discuss how we can assist you in finding a resolution that works for you. Let us be your advocate and guide through this complex journey.
