If you’ve tried any of the other commercial collections tactics discussed in previous posts to collect on a past due account without success, it is time for you to consider other options. How do you know if you need a commercial collections lawyer? The benefits of hiring an experienced commercial collection attorney are many, including:
Intimidation. While letters from collection agencies often end up in the trash unread, correspondence from well-respected collections attorneys are known to catch the debtor’s attention. At our firm, demand letters are lawfully hand-delivered by a 240 pound, 6’2 “biker”.
Expertise. Experienced collections lawyers know how to trace assets that the debtor may have hidden and perform document searches to uncover bank accounts and other assets debtors may have that can be used to satisfy a judgment.
Tools. Tools available to collections attorneys include wage garnishments, property foreclosures, and bank levies. Most of the time, this enough to convince the debtor to pay, but if not, an attorney can follow through with these procedures on your business’s behalf.
Here’s how you know when it’s time to hire the best lawyer.
The Debtor Hasn’t Responded to Your Collection Attempt
The most common commercial collections attempts include phone calls and sending demand letters. If the debtor refuses to answer their phone or doesn’t respond to your demand letters, it may be time for you to pursue other means. Your choices are hiring a collections agency or a commercial collections lawyer.
What’s the difference between those two options? They both work to get you paid. However, commercial collections agencies are often limited in what they can do. Lawyers have more options. Even if a collections agency sues a debtor on your behalf and gets a judgment, they may not be able to enforce it. Whereas, a commercial collections lawyer can explain your options and help you choose the one that best suits your needs.
The Amount Owed to You Is Worth the Expense
Not all commercial debt may be worth pursuing. It may be better to write it off. Compare what is owed to you as well as your likelihood of collecting against the potential cost of collecting on it. Although many perceive hiring a lawyer to be an expense, it should be looked at as an investment. Lawyers can often provide you with more resources. In addition to filing a lawsuit, they can also help you enforce any judgment you receive. They can also help you avoid a lawsuit by employing commercial collections and settlement techniques.
You Don’t Have the Time or Staff to Devote to Commercial Collections
Businesses of any size may benefit from a commercial collections attorney. Maybe your current staff simply doesn’t have the time to work on outstanding accounts. Maybe you don’t have a staff member you can devote to the process. If you can relate to either (or both!) of those, a commercial collections lawyer may be beneficial for you.