Collecting a Debt in the United States (continued)

Collecting a Debt in the United States (continued)
Enforcing a Judgment Collection:

If you proceed through court to collect a debt and obtain a judgment against a debtor, you will be able to seize the judgment debtor’s money and/or property to satisfy the debt. In order to effectuate this process a judgment creditor must exercise caution to ensure that the assets seized actually belong to the debtor. As with other debt collectors, you must not engage in conduct that is deceptive, harassing, or threatening.

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Collecting a Debt in the United States (continued)

Collecting a Debt in the United States (continued)
How to Collect a Debt:

Now that we have a general understanding of what a debt collector can and can’t do we must discuss the actual process of collecting a debt which can take several forms. Most common among these is to simply hire a collection agency, transfer the debt to a collection agency who, in turn, attempts to collect the debt. Upon collection you will b e paid and the collection agency will take some money for their own as payment for their collection services.

Another option for collecting debt is by pursuing the local debt in court. In order to collect a debt through a court in Nevada you must file a complaint with a court having proper jurisdiction. In general, a defendant debtor will not answer a particular complaint leading to a default judgment. Once a default judgment has been entered the debt can be collected and the judgment used as evidence of debt liability. However, default judgments may be set aside for good cause. Nevada courts apply this rule liberally, preferring to hear a case on its merits rather than disposing of it through default. Even if the judgment is upheld, enforcing a judgment collection through the courts of Nevada is difficult and requires the assistance of experienced legal counsel.

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Collecting a Debt in the United States (continued)

Collecting a Debt in the United States (continued)
Prohibited Debt Collection Practices in Nevada:

In Nevada, a collection agency, or its managers, agents or employees may not use any device, subterfuge, pretense or deceptive means of representation to collect any debt, nor use any collection letter, demand or notice which simulates a legal process or purports to be from any local, city, state or government authority or attorney. Nevada Revised Statutes 649.375(1).

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Collecting a Debt in the United States (continued)

Collecting a Debt in the United States (continued)
Who is Considered a Debt Collector?

A debt collector, as defined by the Fair Debt Collection Practices Act, is anyone who regularly collects debt on behalf of the original creditor. Original creditors, such as credit card companies and banks, are not considered debt collectors when they attempt to collect debts owed directly to them. Thus, original creditors are not covered under the FDCA. Moreover, the FDCA is somewhat limited in that it only covers consumer debt. This includes personal, familial and household debt, but does not cover business debts or any debt incurred for business purposes. Common types of consumer debt are credit card debt, car loans, mortgages, utility bills and medical debt.

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.