What is the debt collection industry?
It is the business of collecting money that is owed. Who owes money? Almost every adult in America owes money one way or another. If you have a home, you owe the mortgage, if you rent, you owe the rent, if you have a credit card, you owe the credit card company, if you file taxes, you might owe the government (IRS), if you have a cell phone, you owe the cell phone company, etc...
As you can see, this is a huge industry. Impossible to quantify because there are many different players involved. Example: Third party debt collectors, mortgages, student loans, vehicle financing, other asset financing, rental agreements, telecommunication services, recreational services, medical services, attorneys for collectors, attorneys for debtors, bankruptcies, credit cards, child support agencies, etc...
So what happens if you do not pay any of those companies? What happens if you stop paying your cell phone? First, it will be canceled, of course. Then, you will be charged for the usage you owed them. They let you use their antennas, you agreed to pay them at the end of every month, you breached the contract by not paying. Same goes for every other scenario, big or small, where you use a service or purchase a product and have a balance owed or a recurring monthly contract that ended by you not paying.
So, does it matter why you did not pay them? No. You could have been fired from you job, you could have been in a car accident and in the hospital for 1 month, you could have a million reasons, short of actually dying, and the creditor still has the right to collect if you breached the contract first.
Of course, nothing in law is as clear as this, therefore there are many exceptions. Bankruptcy, for example, can eliminate unsecured debt. Call the Rashid Law Firm in Houston, TX for a free consultation with a bankruptcy attorney if you feel that you are drowning in debt at 832-209-8833.
