Many businesses are given the difficult task of collecting old debts that are owed to them. It is, however, completely within their legal right to seek repayment of these debts. When businesses have difficulty obtaining payment on a debt, it is often in their best interest to obtain the help of a law firm that can take collection actions on their behalf.
When you provide a valuable product or service, it is expected that you will get paid for those products or services. In other words, you have the right to obtain payment for services rendered. Unfortunately, customers and clients alike do not always deliver on the promise of paying for goods and services. As a result, the consequences can be quite damaging to a business. If a business does not receive payment for their services, they can fall behind financially and face financial trouble or even ruin. Collecting debts can be a challenging feat, but you do not have to face it alone. If you are overwhelmed with unresolved and unpaid debts, it may be time to turn to a skilled commercial collection attorney for assistance.
If you are having difficulty collecting debts, it is wise to consult with a commercial collection attorney, who can help explain the legal options for recovering debts. At Matthews Law Firm, Inc, we provide exceptional legal representation to businesses and companies seeking to collect on debts owed to them. Our team can provide you and your business with efficient and effective solutions to debt collection.
The Benefit Of Hiring A Commercial Collections Attorney Over A Collection Agency
Chasing debtors is not the most thrilling part of owning or running a business. It is safe to say that the majority of businesses much rather focus on production, services, products, and most importantly, making money, not losing it. Unfortunately, debt collection is often unavoidable when working with other businesses, customers, and clients. If you own a business, chances are that you will experience the debt collection process at least once in your business’s lifetime.
Collecting money owed is essential to running a business efficiently and successfully. When efforts to collect a debt through phone calls and letters go unanswered, it can frustrate and take a toll on the business. And so, if you have run out of recourses on collecting money you are owed, it may be time to consider hiring a commercial collections attorney in Tustin, CA. Luckily, when it comes to debt collection, businesses have options.
When all other measures to recoup money owed have been exhausted, it may seem obvious to choose a debt collection agency as the next option. However, it is worth noting that a debt collection agency will take the same actions against a debtor that has already been taken by the business looking to get paid. They will repeatedly call and send letters to try to get a hold of the debtor. The difference is that debt collection agencies have phone systems and software that automates their actions to collect debt. Their services are designed to be a more efficient avenue when it comes to pursuing delinquent accounts.
The methods that collection agencies employ to recover a debt include:
- Calling the debtor’s home and/or place of business
- Sending stern notices of the debt owed
- Contacting friends, co-workers, and family for information
- Reporting late payments to the credit bureaus
Collection agencies tend to have numerous clients and debtors, which means that their attention is split amongst many accounts. If you want a more dedicated and personal service, hiring a commercial collections attorney is usually the better option.
While many believe that hiring a collection agency is more cost-effective, that’s actually a common misconception. Most commercial collections attorneys will work with their clients on a reasonable fee structure. They can evaluate the debt in its entirety and establish a recovery solution that minimizes costs and fees.
Moreover, a commercial collections attorney has the option of legal resources and recourses that are not available to a collections agency. Most of the time, they are also able to collect a debt quicker than a collection agency. Debtors tend to be more responsive when an attorney’s name is attached. The fear of a prospective lawsuit is sometimes enough to incite a debtor to pay their debt. However, if a debtor is still immovable, a commercial collections attorney can move forward with the lawsuit and obtain a judgment to enforce the debtor to pay.
If, however, all parties are agreeable, a commercial collections attorney can help draft an agreement for payment. For instance, the debtor could make monthly payments. They would be bound to fulfill the agreement via a well-written contract that outlines the terms and conditions.
- Who Do You Usually Assist When It Comes To Debt Collection?
- What Is The Attorney’s Role In Negotiating And Defending Creditor’s Claims On Behalf Of Clients?
- What Are Some Of The Preliminary Steps That You As The Attorney Will Take On Behalf Of Your Client In The Debt Collection Process?
- At What Point Do You and Your Clients Start the Judgment Enforcement Process if Prior Collection Efforts Have Been Unsuccessful?
- How Does the Interest Rate Apply to Your Potential Recovery?
- How Much of the Plan to Enforce A Judgment Does a Client Generally Need to Know About?
- What Are Orders to Preserve the Value of Assets Levied Upon?
- What Are the Duties and Liabilities of a Third Party After a Levy?
- What Happens if a Debtor Files Bankruptcy? Where Does That Put My Debt in the Line of Creditors? What if There’s Nothing to Collect? What Do You Do if It’s a Chapter 7?
- When You Sit Down With a Potential Client Who Is Trying to Satisfy a Debt, What Type of Information Do You Need to Determine Whether the Debt is Worth Pursuing?
- Is Taking Action To Collect A Debt Always Worth It?
- As A Creditor, What Can We Do If We Can No Longer Locate A Debtor Who Is Ordered To Pay A Judgment?
- What Debts Can Be Prevented From Being Discharged In A Chapter 7 Or Chapter 13 Bankruptcy Case? Could This Help Our Chances Of Recovering A Commercial Debt Owed To Us?
- What Can Be Done If A Debtor Is Fraudulently Disposing of or Transferring Assets As We’re Attempting To Collect?
- What Tools Can Be Used To Collect Debts Prior To And After Filing A Lawsuit Against A Debtor?
What Services Do You Provide To Businesses That Are Attempting To Collect Debt?
We handle almost every type of business-related dispute, with the exception of those involving tax or securities law. We have significant experience handling breach-of-contract and collections matters involving companies that aren’t being paid what they’re owed, and real estate disputes including purchase and sale agreement issues. We also handle disputes among business owners, partners, shareholders, and LLC members, and represent employers that are being unfairly targeted by employees and predatory labor lawyers…Read More