Debt Collection

Learn how to collect debt and get helping making contracts to avoid collection in the future.
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Kendall Jones, Esq.

Rocket Lawyer On Call Attorney

Common Debt Collection Questions

How do I collect debt?

While you did your end of the deal the borrower may not have done theirs. First, it may be beneficial to send a simple demand letter restating the terms of the loan in case the borrower simply forgot. If the debt remains you might consider mediation or a collection agency. Finally, if all else fails you may be forced to contact an attorney, file suit, and go to court.

What’s the difference between secured debt and unsecured debt?

Secured and unsecured debt are the most common types of debt. WIth secured debt, the borrower has put some form of property up as collateral for the loan--in the event the borrower cannot pay his debt the lender can take possession of the collateral. Conversely, with an unsecured debt the lender cannot repossess assets and must seek other means of payment.

What is debt consolidation?

If you have more loans than you can keep track of debt consolidation puts them in one place. Debt consolidation is the act of taking out a single loan to pay off other loans and it has some important advantages and pitfalls. While consolidating your debt may secure you a lower interest rate the debt is still there. Furthermore, if the consolidated loan is a secured loan you risk losing the collateral attached to it. As with any loan, be absolutely sure it’s a good deal for you.

How do debt collectors work?

If you’re owed money and simply can’t get back, you might want to think about contacting a debt collection agency. Generally, an agency will buy a debt from you at a reduced rate and deal with the debtor themselves. Once you do this, you will no longer be able to collect on the debt.

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More Debt Collection Documents

Collect What You’re Owed

Collection Letter Get what you're owed
Debt Settlement Agreement Restructure a loan and get paid
Demand for Money Owed Ask for what you're owed
Debt Collection Worksheet Map out a plan to get repaid
30-Day Past Due Letter Alert a borrower they're a month behind
60-Day Past Due Letter Escalate your demand for repayment
90-Day Past Due Letter Make a final demand for payment
General Receipt Give a borrower proof of payment

Avoid the Hassle

Promissory Note Avoid debt collection with a smart contract
Promissory Note with Balloon Payments Get specific with a payment schedule
Promissory Note Due on a Specific Date Choose when you'll get paid back
Promissory Note Due on Demand Get paid back when you say so
Secured Promissory Note Lend with collateral
Promissory Note with Installment Payments Set terms for your Promissory Note
IOU Form A simple way to lend money
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