Define: Collection Basis

The collection basis refers to the legal grounds on which a creditor can pursue the collection of a debt from a debtor.

Common collection bases include unpaid invoices, breach of contract, and failure to make payments on a loan or credit agreement.

No, a creditor must have a valid legal basis for pursuing collection of a debt. Without a valid collection basis, the creditor’s actions may be considered harassment or unlawful.

If you believe a creditor is pursuing collection without a valid basis, you should seek legal advice and consider disputing the debt with the creditor.

In some cases, a creditor may attempt to change the collection basis after pursuing collection. However, this may require the creditor to provide additional evidence to support the new basis.

If a creditor has a valid collection basis, you still have rights as a debtor, including the right to dispute the debt and seek a resolution through negotiation or legal action.

If a debt has been discharged in bankruptcy, the creditor may be prohibited from pursuing collection. However, there are exceptions, and it is important to seek legal advice if you are facing collection on a discharged debt.

The evidence required to establish a valid collection basis may vary depending on the specific circumstances of the debt. Generally, the creditor must provide documentation, such as contracts, invoices, or payment records, to support their collection efforts.

If a debtor believes a creditor is pursuing collection without a valid basis, they may have grounds to sue the creditor for harassment, violation of consumer protection laws, or other legal claims. It is important to seek legal advice to understand your options in such a situation.