Unsecured property is something that a debtor makes payments on, but there’s no collateral that secures the loan. This means that if the debtor stops paying, the creditor has nothing that they will receive as payment. What are your options for the commercial collection of unsecured property?
Pursue the Debt on Your Own
If you are a business owner trying to collect a debt, you have the option of keeping the collections process in-house. The benefit of this is that there’s no additional cost. Be forewarned that actually collecting on the unsecured property debt can be quite difficult because in many cases, your abilities are limited.
Hire a Collection Agency
You have the option of hiring a collection agency that specializes in commercial collection of unsecured property. This allows you to focus your time on more important areas of your business while someone with collections experience works to get you paid. However, collection agencies do cost money. There’s no guarantee that you’ll get paid. If you want to pursue court provided remedies, the collection agency can’t help you unless it’s ran by a law firm.
Talk with a Commercial Collections Lawyer
Finally, you could speak with an experienced commercial collections lawyer. When it comes to collecting unsecured property, the right lawyer can introduce you to more options that may meet your needs. Commercial collections is often an intricate, time-intensive process. The debtor may look to get assets out of their name to avoid paying. They may hide assets. They may shut down. A commercial collections lawyer can help you determine if court options, such as garnishment or a prejudgment writ of attachment, would benefit you.
It’s important for you to understand that not every unsecured property debt owed to you may be worth pursuing court remedies over. If it isn’t, a lawyer may be able to help you secure a payment through collection methods or through settlement. A commercial collections lawyer can also help you come up with a plan to minimize the number of past due unsecured property debts on your books. To learn more about commercial collections of unsecured property and how we can help, give us a call!