The process of debt collection can vary depending on the type of debt at issue. Both commercial and consumer debt can present different challenges. A skilled New Jersey collection attorney can educate you on your legal options so you can make an informed decision about how to proceed.
Secured vs. Unsecured Debt
Unsecured debt is often the most problematic to collect. These debts are generally for loans made without collateral. A secured debt involves loans generally made for a specific item such as a car, house, boat or other vehicle. In a secured loan, the creditor retains an interest in the property in the form of a written lien. In the case of a vehicle loan, for example, the creditor’s name will appear on the title as a lienholder. This means the vehicle’s owner cannot transfer the title or sell the vehicle in question without satisfying or clearing the lien (i.e. paying off the loan).
Loan Default with Secured Debt
If you are a creditor with a secured debt and your borrower stops making payments, they are in default. Our firm can assist you with collections. In the case of a defaulted debt for a car, boat or other vehicle, you may need to begin the process of repossession. Our attorneys can help you do that. In essence, repossession is a legal process by which the lienholder retakes possession of the collateral. The vehicle can later be sold or auctioned off to satisfy the debt. If the sale price is enough to cover the debt, the loan may be discharged. Often, the value of the vehicle is lower than the amount of the debt owed due to depreciation and other factors. When this happens, the debtor may still owe the creditor for the balance of the loan. Your attorney can discuss options for recovering any remaining debt.
Entrust your commercial and consumer debt collections matters to an experienced, aggressive new jersey collections lawyer. Make an appointment to discuss your case and get a thorough evaluation. Call Snellings Law LLC at 973.265.6100.