collection litigation

Collection litigation refers to legal actions taken by creditors to recover unpaid debts. When a borrower fails to repay a loan or owe money, the creditor may file a lawsuit in court to seek payment. If the court rules in favor of the creditor, it can enforce the judgment through procedures like wage garnishment or bank account levies. This process is typically a last resort after attempts at collection through communication or negotiation have failed. Collection litigation ensures that creditors have a lawful way to pursue owed funds, while borrowers have an opportunity to respond and defend themselves in court.