What are the steps in collecting a debt?
The first step is to send a demand letter in compliance with state and federal laws. After we are retained, a letter is created and mailed within 7 days of receipt of the account in our office. The letter is sent via certified and first class mail to assure the debtor receives the demand. The debtor has 30 days to dispute the debt. If the debtor does not respond within 30 days, telephone contact is attempted. If there is still no response from the debtor or a voluntary repayment agreement is not in place, we will recommend whether a petition should be filed in the proper court. We always seek client authority to file a lawsuit. If a lawsuit is authorized, service of the lawsuit on the debtor by the Constable or Sheriff takes up to 21 days from date of filing. The debtor must file responsive pleadings or seek an extension of time within 10 to 15 days after service, depending on the court. If the debtor does not make an appearance, a default judgment can be obtained against the debtor. T
