With the business environment's continuous and improved use of technology to save time and money, you may be wondering whether you should use debt collection software for your commercial collections. While good debt collection software certainly has its place in the business environment, it's not always the best solution for commercial collections. Here are some things to consider.
Although a past due commercial account will have its own associated facts that may cause you to create a specific commercial collections plan for it, it is helpful for business owners to understand the collections process. Keep in mind that throughout the entire commercial collections process that you should learn as much as you can about the business and its state in order to determine whether the debt is collectible (or remains collectible). If you have questions about the commercial collections process or want to learn about your legal rights, you should speak with a licensed commercial collections attorney in Los Angeles.
Past due accounts happen to every business. Commercial collections are no easier than consumer collections. When done incorrectly, it can ruin business relationships, damage the online reputation of your business, or cause your business to be the subject of a lawsuit. Before you send a business account to commercial collections, do these 4 things first.
Commercial collections can be a confusing process for a business owner. In this post, you're going to learn the answers to the 5 most frequently asked commercial collections questions. This post is not meant as legal advice. In fact, we aren't addressing any legal scenarios here. This is because each commercial collections case is unique and has its own facts as well as potential legal solutions. To learn more about your legal rights, speak with an experienced attorney who focuses their practice on commercial collections.
With the right collection attorney (i.e., a collection attorney that can actually collect), a money judgment can accumulate a sizable 'return on one's investment'. As of January 1, 1983, the rate of interest on a money judgment is 10% per annum. California Code of Civil Procedure §685.010(a). Perhaps surprisingly, that rate of return is generally better than one offered by a bank.
If a debtor voluntarily paid his/her judgment, there would be no need for a collection attorney. Since the failure to pay a creditor back happens more often than not, should a creditor want to enforce a judgment, he needs a competent collection attorney. One of the best tests of competency is how a collection attorney responds to a debtor's claim of exemption. A judgment debtor utilizes a claim of exemption to protect his property from a judgment creditor.