The Collection Process Is Straightforward
ROSS COLLECTION SOLUTIONS represents Creditors who pursue Pennsylvania debts. Each state is different with respect to their practices. We make sure we abide by Pennsylvania case law and statutes.
It is important to recognize that the collection process is not a single occurrence.
It is a process that, depending upon the debtor leads to different options. Often times, payments are made just with the attorney letter – they know you are serious. However, the steps below illustrate why it can take longer.
1) A Letter Is Sent
This letter is in full compliance with the Fair Debt Collection Processes Act (FDCPA) which requires us to be sure the amount is correct, directed to the proper party, and is not threatening.
2) Wait on Payments
If the debtor responds to the letter, we attempt to resolve the debt by a single payment or a payment plan. A single payment often requires concessions. We do not discount the debt without your authorization.
3) Promissory Note
If we do accept payments, we insist that the debtor sign a Promissory Note. The debtor must agree to the amount due with Confession of Judgment language in the Note. This is important because if there is a default in payments, we do not have to litigate to establish the debt and the amount due. The Confession of Judgment allows us to immediately record the Judgment and begin the collection process.
4) File a Lawsuit
If we are unable to obtain a response or an acceptable and compliant payment plan, we file a lawsuit. Once the lawsuit is filed, we attempt to obtain a Judgment by Default, or an Award based on Preliminary Objections. In those instances where a quick result is not available, we proceed to trial.
Typically the trials results in Awards that are reduced to Judgments because the only issue is typically a refusal to pay for a service, product or otherwise that the Debtor has received.
The Judgment is the Court Order that awards us the relief we are requesting. We immediately record the judgment, which in turn, attaches to property owned by the debtor. This results in the debtor's inability to sell, dispose of, or borrow against this asset without first paying off the Judgment.
6) Discovery in Aid of Execution
After we have obtained a Judgment, there are various methods to identify assets that the debtor may own. Discovery involves serving Interrogatories, taking Depositions, and utilizing specialized asset search tools available through constantly changing technologies.
While a person cannot be sent to jail for a bad debt, they can be sent to jail for not complying with Discovery. If a person does not file a timely response to Interrogatories, or does not agree to a Deposition, the Debtor can be found in Contempt of Court and jailed. This is real leverage.
Furthermore, should we find that the debtor has sold or given away assets, we can move to set aside these transfers as fraudulent conveyances.
7) Garnishments and Executions
Once the Judgment is obtained, we can commence Execution on the Judgment which allows us to garnish money from bank accounts or third parties that owe the debtor money. We can file liens against real estate and assets the Debtor owns. Through the execution process, we can force a sale of assets such as cars, furnishings and anything the debtor is entitled to or owns. Additionally, if the debtor owns real estate, we can force the sale of real estate through a sheriff sale.