What happens if your debt goes to a collections company?
If you have unpaid debts, it’s important to know what happens if your debt goes to a collections company. This is because collection companies are specialized firms that focus on collecting money owed by individuals or businesses. When a debt goes to collections, the collector will typically contact the debtor and make an effort to collect the money in full or reach an agreement such as a payment plan. Furthermore, they may also report the collection activity on your credit report, which can impact your credit score and ability to get loans or lines of credit in the future.
The first step in this process is for the collection agency to send you an initial notice about your overdue account. This letter will likely contain details about how much you owe, when it was originally due, and if there are any additional fees associated with it.
The Law Offices of Omar Zambrano has helped thousands of the 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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