What happens if your debt goes to a collections company?
When financial obligations are not paid on time, creditors may take action to collect the debt by selling it to a collections company. If your debt is sent to a collections company, it’s important to understand what this means and what you can do about it.
Collections companies are third-party businesses that specialize in collecting debts from individuals who have defaulted on payments. When a debt goes into collections, the creditor has given up trying to collect the money themselves and has sold your debt (usually for much less than what you actually owe) to a collection agency in order to recoup some of their losses. It’s important to note that once your debt is transferred into collections, it will appear on your credit report and lower your credit score.
The Law Offices of Omar Zambrano has helped thousands of people and businesses in the past to get out of debt and start over.
Our goal is to help you find a fresh start FAST!
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