legal collections

Legal collections refer to the process where a creditor takes formal legal action, such as filing a lawsuit or obtaining a court judgment, to recover unpaid debts. This approach is used when other collection efforts have failed, and it involves legal procedures to enforce the debt, potentially leading to wage garnishments, bank levies, or liens on property. Legal collections ensure that creditors have a lawful means to pursue owed funds while following relevant laws and regulations governing debt recovery.