Plenty Of Hours Ahead For Lawyers In Debt Cases

[Purveyor]

Lawyers who collect bad debt from consumers, or defend them, already have plenty of job security.

But things could be getting even better.

One reason is that those failing in current tough times will hit the legal system in a few months. Another is a recent U.S. Supreme Court case that will make suing over bad debt possible for those who don't even have a financial stake in the debt.

"In the past five years, a secondary market has developed in credit card debt that mirrors the one in the mortgage market. There's been a growth in brokers, resellers and people getting into the business — including lawyers," said Anh Regent, a Houston lawyer who specializes in representing creditors trying to collect from debtor businesses and consumers.

Regent said there are groups of lawyers who sue over bad debt and growing groups of lawyers who represent consumers who were sued. He added that there is reason to believe it'll become an even more crowded field.

The Supreme Court recently ruled that collections lawsuits can be filed by people who don't even own the debt, which will make it easier for the big national debt collection companies to file even more suits, he said.

The onslaught is already starting, Regent said.

"There are already more lawsuits filed by people who don't own the debt," said Regent, who says that when times get really bad, it also gets hard to collect anything from the truly destitute.

"There's more money in suing businesses over debt than consumers," he said. With a business, "the sheriff can go out and pick up a bulldozer."

But with consumers, major possessions — a home, for example — may be protected, and they may have no assets to be taken. He noted consumers are usually far more emotionally involved, too.

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HOUSTON CHRONICLE: http://www.chron.com/disp/story.mpl/headline/biz/5920510.html