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Debt Collection Help in San Diego

Law & Legal

Debt collection help in San Diego for cases make up a huge portion of civil filings in county courts. Lenders frequently sell charged-off debts to debt collectors for pennies on the dollar.

If you are being harassed by debt collectors, be sure to document every call. This includes who the debt collector is, who they are collecting on behalf of and what they claim you owe.

Debt Consolidation

San Diego is a beautiful city with a lot to offer, but it can also be expensive. Inflation and housing costs are above national averages, which can leave families with little wiggle room in their budgets. Debt consolidation can help make those debt payments more manageable.

The main goal of debt consolidation is to replace multiple debts with a single, lower-interest loan. This can be done with credit cards, unsecured personal loans and other sources of debt. A debt consolidation loan can usually be obtained from a bank or credit union.

Consumer credit counseling is another option for debt relief. These programs are typically available for credit card debt and won’t affect your credit score as long as you stay current with your monthly payments. However, the benefits are limited and may only cover interest rates, not the principal balance. Debt settlement or debt negotiation is a more comprehensive approach to reducing your total balance owed.

Prejudgment Writ of Attachment

When a debt is collected through a lawsuit, there can be legitimate concerns that the defendant will move or hide assets to avoid paying the judgment. Assets like cash, jewelry and automobiles are easy to locate but often cannot be seized until after the judgment is entered. Other assets like inventory may be sold off in the normal course of business or depleted so that by the time a judgment is obtained there are no assets to collect.

A prejudgment writ of attachment allows a creditor to prevent the defendant from moving or hiding assets by placing a lien on those assets. Typically the creditor will file a writ of attachment along with the complaint when the action is in its opening stages. A hearing will be held and if the court finds that the conditions for issuance of the writ exist (that there are grounds for attachment, that the claim is probable valid and that there is no reasonable probability that the defendant will successfully defend) it will order the clerk to issue the writ of attachment.

Judgment Enforcement

When a judgment is obtained, it can be enforced to collect the debt. Depending on the judgment amount, collection may take several forms, including garnishment of wages, levying on bank accounts and leveraging real property.

A restraining notice will prevent the judgment-debtor from disposing, transferring or tampering with any assets that can be used to satisfy the judgment. If you are aware of where the judgment-debtor banks, for example, a writ of execution can be served with the branch where they deposit funds. The resulting bank levy freezes twice the amount owed in their account.

It is best to get in touch with the owing party and ask them to pay voluntarily. In addition to letting them know where to mail the payment, you may offer to accept less than the full amount or agree to make regular payments. In any event, both parties should document the terms of the agreement by filling out California forms called Stipulation for Time Payments (L-1094). This is an effective way to avoid a contested conversation and reduce the chance that a court case will be needed to enforce the original judgment.

Debt Collection Lawyers

The practice of debt collection involves a number of legal issues and procedures that can be complex. A lawyer with extensive experience in this area can help you navigate the process. A skilled attorney will negotiate on your behalf and may charge a contingency fee for his or her services.

In 2022, collections cases made up a quarter of the total civil filings in San Diego County, according to data provided to inewsource by the court. These suits often result in a judgment against the defendant, including the unpaid debt and interest.

Debt collectors are governed by the Federal Fair Debt Collection Practices Act and California’s Fair Debt Collection Practices Act. If they violate these laws, you can sue them for damages and attorney fees. A competent debt collection lawyer could also review your finances and discuss other forms of debt relief, such as bankruptcy or debt settlement. The goal is to reduce your accumulated debt and eliminate your financial burdens.