When it comes to commercial collections, there’s one main rule that you should follow: Do it now. Don’t wait to collect on past due accounts. Here’s why.
Older Accounts Are Harder to Collect
Generally speaking, the longer that an account is past due, the harder it is to collect on. This can be for any number of reasons. The business could close down. The company may file bankruptcy. You could lose important documentation that validates the debt. That documentation is key because if the debtor requests debt validation, you must provide it in order to continue your collection efforts. You also need the documentation if you want to pursue other collection options such as suing the debtor. Even if you have the documentation, getting a judgment is one thing. Yet, being able to enforce the judgment may be another problem altogether when a debt is extremely old. This is where the skill and experience of an aggressive commercial collections attorney will come in.
You Must Abide by the Statute of Limitations
Commercial collections activity is subject to a statute of limitations. This is a time period set up by law that gives you a certain amount of time to attempt to collect on the debt. Once the debt is outside of the time, it’s practically impossible to collect on unless you’re able to complete certain steps to restart the debt timeline. Talk to a collections lawyer to determine what the statute of limitations is for your debt collection case.
If a Debt Is Old, Should You Just Write It Off?
As we shared above, collecting on a commercial debt often gets more difficult with time. At some point, businesses often wonder if they should just write it off. The answer is: talk to an aggressive commercial collections attorney before you make any decisions about unpaid debt. You will want to determine if the money that is owed to you is a significant amount that warrants you trying other avenues to collect on the debt. Skilled collection attorneys often have additional ways that they can use to try to get you paid. Generally speaking, writing off the debt should be your last option.
For more challenging collections issue, you will want to hire an experienced commercial collections attorney. Reach out to The Law Offices of Ronald P. Slates today for a consultation.