Commercial Debt Collection is a complicated system

Commercial Debt Collection is a complicated system

How does Commercial Debt Collection work? It is a very complicated system that is not ideal for any of the parties involved. Debt collectors can be from debt collecting agencies, independent people or attorneys. Debt collectors purchase your debt from whomever you borrowed it from and their job is to collect the payments from you. They purchased your debt account at a discounted rate so they are usually prepared to make a deal with you on paying it off. A type of debt that would go into collection and sold to a debt collector is any debt that is over 60 days passed due. Debts that can be sent to collection include credit cards, car loans, medical debt, personal loans, student loans, business debts and unpaid utilities and phone bills.

Each debt collection agency usually, but not always, specializes in certain types of debts. Also some debt collection agencies only purchase and collect debts that are at least $200 and that are less than two years old. This is because each debt falls within a statute of limitations so certain debts must be collected between a certain amount of time or they are unable to be collected at all. So they are always in a race against time. Debt collectors also have the ability to contact a lawyer in order to take you to court to collect your business debts.

Your business debts are not connected to your personal debts. So when a debt collector attempts to collect a past due debt, they can only go as far as collecting debts from the business end of your life. They are not able to dip into your personal savings or accounts in order to help pay off your debts. Your business is a seperate entity. For more details you may click this Commercial Debt Recovery.