What Happens to Bills in Collection


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At Asset Recovery Associates, a team of professional collections agents work to resolve debts and achieve mutually acceptable results. Asset Recovery Associates strives to ensure that all parties, including debtors, understand the collections process.

When an unpaid bill goes into collection, it usually means that the original creditor has attempted on several occasions to secure the owed funds. After failing to do so, the creditor either assigns or sells the debt to a third-party organization. Such organizations dedicate their staff and resources to locating debtors and securing payments.

Collection agencies report debts to credit bureaus, but it may take 30 days for this to happen. Agencies and experts suggest that repayment before the end of this grace period is best for the debtor’s overall credit score.

If the debtor cannot pay the total amount upfront, the collection agency will typically work with him or her to determine a payment plan. Experts suggest that debtors cooperate with these efforts to avoid a lawsuit, particularly if a debtor has assets or an income that a court judgment could put at risk. Any and all agreements should be in writing and specific to the situation so as to protect the interests of all involved.


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