Debts must be repaid, but there are cases where it is not possible for some reason. Then the case can go to a debt collection company whose task is to recover the debt. Many people, however, think about debt collection with bailiff classes.
What exactly are they different from each other?
Debt collectors get various types of debts, for example from unpaid loans and credits , debts from unpaid bills for telephones and television, and debt collectors deal with debt recovery from enterprises. There are many debt collection companies in Poland – they are both well-known companies and those that are smaller and usually focus on a specific region. Collecting activities are also carried out by some law firms.
Debts go to the debt collectors most often as a result of their sales – the debt collection company purchases debts at lower prices than the value of claims, then to recover the debt with interest and additional fees. This is her earnings.
Debt collection is carried out in two stages:
- amicable debt collection – soft
- judicial vindication – hard
Many people confuse these two concepts with each other, so it’s worth taking a closer look at them. Precisely for this reason, there is also a confusion of recovery dates and bailiffs’ executions. However, the difference is very simple.
What can the debt collector?
The debt collector is a person who deals with the recovery of debts. However, it has a limited range of legal tools in relation to the bailiff. Debt collectors deal with amicable debt collection, which involves informing the debtor that he or she has debts, as well as inducing him to pay them back.
The debt collector can not threaten the debtor or intimidate him at the same time. He also has no right to seize the debtor’s property. In such situations, the law is on the side of the debtor who can report it to the police as harassment.
What can a bailiff?
The court bailiff already has much wider possibilities than the debt collector. The bailiff begins his action when the case is directed to the court and is resolved in favor of the creditor. He can then execute debts on the basis of an enforcement title, i.e. a writ of execution with an enforcement clause.
The bailiff may take the debtor part of the salary, its savings, and may also take over the property, which may then be subject to a bailiff bidding. In the law, we find information that the bailiff can not take all the property and money of the debtor – he must leave him the part needed for life.
Debt collection is not a debt collector, but it is worth avoiding
Thus, debt collection proceedings at the amicable stage have nothing to do with the bailiffs’ execution, but it is worth remembering that it may lead to it. If the debtor will not be willing to settle the obligation and will not cooperate with the debt collection agency, he may refer the case to the court and then the bailiff on behalf of the creditor.
Therefore, the most advantageous solution for the debtor is to agree to repay the debt already at the amicable debt collection stage. The debt collector can then spread the debt into small installments that will be easier to repay. The total amount will also be lower for payment because the bailiff charges large additional fees.