How Debt Collection Companies Works
If you owe the county or the state a lot of money due to a hefty fine and you cannot pay it right away, you will often have the option to set up a payment plan with the state. You will need to make a reasonable faith effort in paying anything you owe to the state that you can pay, and from there you will be able to pay over an extended period of time if needed.
Payment plans are often available for people who owe at least one hundred dollars to the state or county and who have a low income that is below the median income for that county. Additionally, people may only have the option to use a payment plan if they committed a minor crime. If they committed a severe crime, they will probably not be able to use a payment plan to pay their fines.
If a person uses a payment plan to pay their fine in a few small chunks over time, they will have to pay the fine plus a little bit of interest each month. If they cannot keep up with their monthly payments, the county or state can send their debt to a debt collector who can collect the money from the person who owes it by threatening to sue them and to get a bench warrant if needed.
Additionally, if a state wants to, it can use a debt collection agency in order to get advice on whether it should give a person a payment plan. This decision is based on a person’s credit score and any crimes that the person has previously committed in order to determine if a person is likely to pay the fine they owe to the state or not.
People who owe fines and get taken to a debt collector will often find that the government uses a part of the person’s wages in order to pay down the debt. The debt collector can also collect money from a person’s tax refund in the spring to pay down the debt if they need to.
The debt collection company often analyzes a person’s financial ability to pay down debt before collecting money from the person and is used to ensure that a person does not stop paying the county or state the money that they owe because the person who owes a fine does not feel like paying it.
Often, debt collection companies will sell your car or house to pay the money to the state as needed. A debt collection agency can additionally sue you and ruin your credit score if you owe the state too much money, so you should take it seriously.
A debt collection agency can also settle debts that are not from the government such as a debt that you owe to another person who has sued you for things such as a car accident that you could not settle with your insurance company. Debt collection companies are evaluated based on how often they can find a way for the debtor to pay the debt, so they will work with you to find a way to get your money if another person owes you money.
It is common for people to use debt collection companies to get part of the money that another person owes them, even if the debtor cannot pay all of their money as a result of not having valuable assets or money. As a result, you should see a debt collection company as a type of insurance to protect you from people who do not want to pay the money that they owe you.