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Two avenues for debt collection: in and out of court

It is generally understood by people throughout Ohio that debts and loans must be repaid. Individuals and companies borrow money on a regular basis and should be well aware that debts must be paid back. In many cases, this arrangement is acknowledged and fulfilled. However, in other situations, problems arise when it comes to pursuing repayment.

Companies and creditors that are owed money have a number of options when it comes to pursuing debts, but basically creditors have rights to pursue two avenues for collecting payment. One involves directly contacting debtors to resolve the matter outside of court; the other involves more drastic action in the form of court proceedings.

Not every situation calls for aggressive collection efforts. Some debts can be collected by going right to the source. Companies can contact debtors directly for payment, or they may send the account to a collection agency.

If these attempts fail, however, it may be necessary to pursue a legal claim and take the debtor to court. At this stage, many people understand that they cannot just continue to dismiss or ignore their obligation and they agree to resolve the matter. In some cases, repayment can be secured through wage garnishment or seizure of property. 

Unfortunately for companies, even these efforts can fail to prompt repayment and it may be appropriate to file a lawsuit to collect debt. These situations can be very taxing and frustrating for all parties involved; however, securing an enforceable judgment to collect the debt can give companies the resources and capabilities they may need to collect repayment through sales of property or liens.

Each of these remedies can be legally complex and time-consuming, especially for companies that have interests and goals outside of pursuing debt. Seeking the help, guidance and experience of an attorney familiar with collections practices and civil litigation can be beneficial for anyone who is trying to navigate the process of recovering unpaid loans.

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