The Process of Collecting on an Unpaid Bill

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Asset Recovery Associates
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 Asset Recovery Associates (ARA) works with both creditors and consumers to secure repayments on owed debts. The professionals at Asset Recovery Associates understand the process of credit collections and are committed to sharing their knowledge.

When a borrower has failed to make payments for a certain period of time, the lender may hire a debt collector or attorney to pursue payment. If the creditor hires a debt collector, that organization will attempt to locate the borrower and establish a payment arrangement. This arrangement may involve a lump sum payment or a monthly payment plan, each of which can result in payment of either the full or partial amount owed.

An attorney often begins the process of collection in the same way, though he or she may also receive authorization to file a lawsuit against the debtor. This situation is most likely when the attorney has a license to practice in the same state where the debtor resides.

A third option for creditors is to sell the debt to a buyer, who can then pursue collections to recoup the funds. Regardless of who pursues repayment, however, it is important for the borrower to arrange repayment as soon as possible, so as to minimize damage to his or her credit score.

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