Debt collection attorneys can employ a lot of methods to secure payment from a debtor. Many of these methods don’t involve going to court. A good lawyer knows how to evaluate every collection issue, determine the assets the debtor has to secure collection, and create a plan for effective recovery. The following are the steps an experienced collection lawyer in New York will take to help you recover your money:
Send a Letter for You
You have probably contacted your debtor several times already through phones, emails, or invoices, and letters. However, your debtor may just toss aside communications on your company letterhead. However, they will not ignore letters from a commercial debt collection attorney. A letter from your attorney will inform them about your decision to retain legal counsel. Sometimes, just knowing a creditor has an attorney working for them will already offer sufficient motivation for debtors to pay. A letter that politely requests payment on attorney letterhead may be all it takes to settle an unpaid debt from a client.
Negotiate a Settlement Arrangement
If a debtor doesn’t respond to your attorney’s letters, the latter will dig a bit further. But, this does not mean jumping to file a lawsuit. An individual or business may not be able to pay their dues because of some reasons. Perhaps they don’t have the cash on hand and can pay their debt off in a series of installments. An experienced collection attorney can negotiate a settlement arrangement on your behalf and can serve as a buffer, so you and your debtor can agree on a settlement arrangement that works for both of you.
File a Lawsuit
When letters and negotiation attempts don’t lead to a satisfactory outcome for you, it may be time to file a lawsuit to get a judgment against your debtor. With a judgment, you can place lines on a property or garnish assets. If you want to file a lawsuit, you will need the assistance of a debt collection attorney.
To ensure the success of your business, you need to balance your costs with your revenue. You know how important prompt payment of invoices is. If your debtors don’t pay, your business can throw off-budget, disrupting your operations. However, many debtors just make excuses or ignore the matter altogether.
As you concentrate on your business, you don’t want to worry about pursuing collections from stubborn debtors that have been reluctant to pay. However, you will not want to write off these losses. Instead, you can hire a collection attorney to help you get what you are owed.