Debt collections happen when someone has a debt, that is, owes money to another party, a person, or company. The reason for the debt collections may be a promise to refund a sum of money or an agreement to pay for goods or services. If someone owes you money, that person is called a debtor, and you are the creditor.
During the debt collections process, the debtor and the creditor have certain rights specifically defined. The law prohibits some practices. A creditor who collects a debt usually has different requests during the recovery process.
Often the amounts to be charged on debt are less than $ 35,000 and are therefore dealt with at Small Claims Court.
Debt Collections at Small Claims Court
At Small Claims Court, the judge had attempted to reach an agreement between the parties involved even before the debt collection trial. The intention of the deal is for the debtor to pay the debt. It is also possible that there is an attempt to make the debtor more flexible. These attempts will be made before the trial. If the settlement is not accepted, the case will go to the Small Claims Court.
At Small Claims Court, you do not necessarily need a lawyer to handle your debt collections case. However, you will need to gather all the evidence and complete all the forms for filing the claim with the Small Claims Court.
The Debt Collection Process at Juzkiw Law
The debt collection procedure can be a tedious process. But at Juzkiw Law, we make it easy for you. We begin the process by sending your delinquent debtor a Juzkiw Law Firm demand letter, with a follow-up phone call if that call goes unreplied.
We at Juzkiw Law wish to give the debtor a chance to take care of the debt voluntarily. Suppose the debtor assumes the opportunity to speak with us. In that case, we will make suitable payment arrangements on your behalf, proposing either a discounted settlement or payment arrangements if financial disclosure reveals an inability to pay the debt in full.
If there is no communication between ourselves and the debtor and if he/she refuses to pay the debt voluntarily, we will identify a suitable court-based enforcement alternative, obtain your instructions, sue, achieve an enforce judgment either through the garnishment of wages or bank accounts, file a writ of seizure and sale against the home/other owned property, or force the sale of real estate using a judicially-supervised sale process. During the above process, Juzkiw Law can settle the debt for what you deem reasonable given the circumstances of proceedings.
If the debtor refuses to pay the debt despite their ability to do so, Juzkiw Law can take steps to recover the full principal and interest owing along with the costs of collection for our client. Juzkiw Law will also ensure that the bad debt is reported on the debtor’s credit record if that is your instruction.
If Juzkiw Law cannot enforce the debt, we can still pursue a lawsuit since it has been our experience that recoveries consistently exceed the suing costs. In these instances, we can utilize traditional, non-legal collection approaches of regularly contacting the debtors by letter and phone, inviting them to resolve the matter before court proceedings are initiated.
Our Aim at Juzkiw Law
Juzkiw Law wishes to incorporate the best of what collection agencies and law firms have to offer. Collection agencies cannot utilize the power of the legal system to enforce debt payments. Also, scare-tactics and harassment do more damage than good in terms of relations between creditor and debtor.
We put our money where our mouth is and carry the cost burden of suing, with our clients only paying out-of-pocket disbursements until we recover money. We commence legal proceedings on suit-worthy files and follow through to obtain and enforce the judgment, including defending groundless counter-claims and responding to meritless appeals.
There are three typical outcomes of our legal collections process:
- The debtor will pay the debt or a warranted discounted settlement voluntarily without a legal proceeding;
- The debtor will be forced to pay the debtor a warranted discounted settlement by a legal proceeding; or
- We will advise the client of why the debt is unrecoverable.
Let Juzkiw Law Firm help you with your debt collection matter. At Juzkiw Law Firm, we have experience with debt collections at Small Claims Court, and we can help you. We work hard to get you your rights. Call us for more information – 416-221-2221