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“Going to collections” – how a Salt Lake City lawyer can help sort out debt confusion in Utah

June 14, 2014

Most of us lying awake at night worrying about our debt are debtors—we owe somebody money – for that Disney World vacation, for that Masters or Law degree, for that new espresso machine or unwieldy mortgage. But on the other end of the line are the creditors, and they have their own concerns, mainly around compliance with collection regulations, which vary from state to state. This piece in an accounts receivable industry magazine talks about how businesses can be sure they are following the rules in Utah—though having a Salt Lake City lawyer as back up when going down any road to collect on a debt is probably a good idea.

Explaining that that the laws in Utah around debt collection are, as they reflect the national statues, in place for “protecting the creditor as well as the debtor,” the article reminds collectors that before any collection can happen, a judgment from the court must first be obtained. For smaller and newer businesses, this is when hiring a Salt Lake City lawyer like Gregory Schulz, or someone similarly versed in business law, can ensure a smooth the process. The court order is what “provides the creditor with the legal right to demand a wage garnishment, a bank account levy, and/or property lien.” It is absolutely critical that creditors understand “that garnishment can only occur after the person being garnished has received a 10-day notice of intent.” This is the debtor’s chance to get their own representation from a lawyer and receive explanation in layman’s terms—all that legal jargon can be overwhelming to someone just having been served.

It’s also important to remember that spoken contracts can be liable to debt collections as well— in these cases, it’s absolutely essential for both parties to have legal representation. A Salt Lake City lawyer like Schulz would be able to better prepare the necessary filings for court around spoken contracts, which can be tricky. Ensuring the collection is within the statute of limitations, for example, can save businesses and debtors both the hassle of dealing with the court only to find that the collection period has expired.

Working with a Salt Lake City lawyer can also help both sides of debt collection in Utah avoid pitfalls like talking over the phone, which can be a violation of the FDCPA, and attorneys can often help the debtor to settle the debt under mutually satisfactory terms. Whether representing a small business of a local doctor’s or dentist’s practice finding itself with unpaid patient bills or an individual who’s paid cash and is in possession of handwritten receipts for bills a business is now claiming are unpaid, an attorney can help make sure that the regulations around debt collection in Utah are adhered to.

It can be intimidating, it can be worrying and troublesome, but debt collections on either side of the money lending fence can also be civil and tidy when the clearly defined state regulations are followed with the help of an attorney’s expertise.

 

 

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