Collection Process in Louisville and Shepherdsville, KY | Wantland Law Wantland Law » Collection Process

Collection Process

Debt collection is generally the process used to collect the money a creditor believes you owe. The following is a typical collection process.  It may not be the same in your individual case.

When a debt first becomes delinquent a lender usually accepts a short period of delinquency before taking action.  During this time you may be able to get by with late, partial, or no payments.

Once collection activity begins, the typical steps are:

  • Numerous letters and phone calls- Calls usually start when a debt is about 30 days past due. Generally a creditor is attempting to find out why you have not paid. Communications are of the inquisitive nature and non-threatening.

During this time your credit card or credit line will be suspended..

  • Next, aggressive calling and letter sending will start. This is the stage when the creditor’s conduct is considered by many to be harassment.  Examples of aggressive collection include, multiple letters and calls in one day, phone calls at work, and threats to report negatively to credit bureaus. During this stage of collection a may also attempt to repossess collateral (e.g repossess a car, boat, furniture, etc.).
  • In the third stage, a creditor may transfer the debt or simply charge it off.  The debt collection may be sent to a collection agency.  Usually, a collection agency will try to alarm and annoy you in order to coerce you to pay.
  • The fourth stage in the collection process is self help/pre-litigation. Debt will be transferred to an attorney for collection. The attorney may or may not decide to litigate your case.
  • Litigation and/or arbitration follows next. At this point court or a court like proceeding will begin. You will receive a complaint from the sheriff or by certified mail. You need to take action at this point if you haven’t already- the next step is costly.
  • The last stage is post-judgment collection. If the creditor wins in an action against you they will be able to have your wages garnished. They can also have your bank accounts garnished to fulfill the judgment.  Liens may be placed on your home.

Stop the Collection Process, Call 502-957-0000

All claims by the collection agencies and creditors should handled in accordance with the Fair Debt Collection Practices Act.

However, you can stop a majority of this action by filing for bankruptcy. Once a bankruptcy petition is filed, the debtor is immediately entitled to relief from creditors through the bankruptcy procedure known as the “automatic stay.” The automatic stay freezes nearly all debt-collection activity and forces creditors to allow the bankruptcy court to determine how and when payment will be made (if ever). To many people just stopping the harassing phone calls relieves an immense burden. WANTLAND LAW, PLLC can make those phone calls stop with just one call to us. Contact WANTLAND LAW, PLLC today.


The attorneys of Wantland Law in Shepherdsville, Kentucky, advise and represent individuals and families in bankruptcy cases and debtor-creditor negotiations in Bullitt County, Nelson County, Spencer County, Hardin County, Okolona, Jefferson County, Louisville, and such communities as Mount Washington, Brooks, Lebanon Junction, Bardstown, Taylorsville, Elizabethtown, Radcliff and Fort Knox.

The information on this Louisville kentucky Wantland Law / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. THIS IS AN ADVERTISEMENT.

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