Your Legal Rights to Collect a Debt

Colorado collection and bankruptcy laws have done an excellent job of protecting the interests of those who are unable to meet their financial obligations. However, creditors may wonder at times if enough has been done to protect their exposure in transactions with clients reluctant or unable to pay their bills.

Rest assured, creditors do have rights in Colorado and with the help of a skilled collections attorney you have a strong chance of recouping much of the money you are owed when your debtors fail to follow through and pay money rightfully owed.

Don’t Delay – Take Action Quickly

When you are faced with a debtor who will not pay what he owes, it is vital that you take swift legal action. Whether the debtor lacks assets or has simply lost his ability to meet his obligations, you as a creditor have no choice but to seek legal advice and help in recouping what you can from any non-exempt assets your debtor may possess.

The collections attorneys at Castle Rock’s Robinson & Henry law firm are experienced in helping clients collect debts owed expeditiously and legally through such instruments as bank garnishments, loan workouts, debt restructuring, business and real estate receiverships, garnishment, and debtor’s exams.

Here’s a brief explanation of these collection methods:

• Loan workout – an arrangement through which a lender reschedules payments or lengthens the payback period in order to help the debtor meet obligations.
• Debt restructuring – a way to keep debtors out of bankruptcy by reducing and renegotiating the amount of a delinquent debt in order to allow a company to remain in business.
• Receivership – a remedy of last resort, a type of corporate bankruptcy.
• Garnishment – a Douglas County creditor can garnishment up to 25% of a debtors wages to repay a debt owed to the creditor.
• Forbearance agreement – a formal agreement between a borrower and a lender to put off an ongoing foreclosure.
• Bank levy – a creditor can garnish a debtor’s bank account to debts owed to a creditor

Secured Debt vs. Unsecured Debt

If your customer files for bankruptcy and you are a secured creditor, you will be among the first to be paid by the courts. Your status as a secured creditor automatically elevates your claim on your debtor’s assets above that of other “unsecured” creditors.
Robinson & Henry represent both secured and unsecured creditors in Colorado bankruptcy court and helps all its clients recoup as much of the money they are owed as is legally possible. We are especially skilled in helping creditors assert their rights against other creditors who may also have a claim on a debtor’s assets.

Automatic Stays

Once the court has issued an automatic stay, you, as a creditor, are prohibited from attempting to collect debts directly from the debtor. At this point, any effort to collect monies owed must be handled through the courts. A skilled lawyer will examine the bankruptcy petition and identify key areas where you may be able to recoup a portion of the money you have coming.

They key factor in these collections cases is to act quickly and decisively as soon as you realize your client is not going to meet his or her obligations. Priority among creditors is vitally important. The sooner you act by reaching out to a qualified attorney for legal assistance the better your opportunity to reclaim debts owed.

Creditor Rights Attorneys

Our attorneys at Robinson & Henry are strong and aggressive advocates for our creditor clients in collections cases. We are able litigators who are well experienced in presenting cases before the bankruptcy court and at negotiating favorable payment arrangements with debtors and their representatives. If you are facing a difficult situation with a debtor, call 303-688-0944 today. We will discuss your needs in a initial assessment and help you determine what action is in your best interest.