Every company experiences customers that don’t pay after receiving goods or services. This can be a challenging situation.
A small company may attempt to collect on the monies they are owed on their own. Many give up when forced to deal with debt savvy business owners who know the limitations a company has when it comes to collecting on a debt.
A small business owner may try to get a debt collection agency to help with their past due accounts. What these companies can do is limited. They can only make calls and write letters. This is usually not effective when approaching commercial customers who are chronically delinquent.
A Phoenix Business Debt Collection Attorney will take a close look at the customer who owes the debt. They may obtain a credit score and more. This provides important information that can be used when trying to collect a past due debt. They will have a good idea of a company’s financial status as well as their ability to pay the debt they owe. The customer’s payment patterns will also provide essential information.
Many businesses will see a letter from a collection agency and ignore it. When most people get a letter from an attorney, they will read it. Correspondence from a lawyer has a greater chance of obtaining a response than something sent from a collection agency. An attorney will know how to inform a company of their legal responsibilities with regard to the law when it comes to the outstanding debt. They can provide details of legal actions that can be taken against a corporation and more.
A Phoenix Business Debt Collection Attorney will know how to obtain essential information concerning the assets of a business debtor. Especially, the information a debtor tries to hide. An experienced lawyer will be able to submit subpoenas to a court for important document searches. This will provide information on a debtor company’s bank accounts as well as other assets. This will enable an attorney to learn if a debtor has the ability to satisfy a judgment against them.
A collection agency will try and collect on accounts in mass. When collecting gets to a level when an attorney can help, individual attention is necessary.
A lawyer will know how to devise a plan on collecting the debts for a particular business. As members of the state bar association, a lawyer will know how collection laws affect a client company’s individual situation. They’ll know the limits of what can and cannot be legally done when pursuing the debt. This will ensure a business avoids any legal problems in the future associated with collection efforts.
An attorney is able to use legal tools only available to lawyers. This includes such things as wage garnishments, bank levies, property foreclosures, forbearance agreements and more. Communicating these scenarios is often sufficient to motivate a business customer to get current with their account. When this doesn’t happen, an attorney can follow through with these legal procedures.
There is a good chance to locate an attorney who will work on a contingency-only basis. This means they won’t be paid until the business receives the past due monies it is owed. A collection agency may charge an upfront premium as well as a percentage of the payments it collects and more.
There are many debtors who know they have nothing to fear from a business or a commercial debt collection agency. Many of them will know about certain provisions contained within the Fair Debt Collection Practices Act.
One of the provisions of this law enables a non-incorporated business to contact the collection agency in writing informing them they refuse to pay the debt and want the collection agency to no longer contact them using any form of communication. When this happens, a collection agency can do no more on the account.
An attorney can continue where a collection agency has to stop. A collections lawyer can file a lawsuit. In many cases, when this is done, a debtor often becomes current or works out a payment plan. The prospect of facing post-judgment remedies such as freezing bank accounts, attaching real estate and more often motivates commercial debtors to deal with their debt.
Contempt of Court
No collection agency can use the court system to effectively collect on bad debts. An attorney is able to make a company appear before a judge to explain his or her actions concerning the debt. It’s possible for a debtor to be held in contempt of court. When this happens, an attorney is able to request a debtor be incarcerated for a period of time. This is another effective method for motivating a debtor to pay the monies they owe a business. A debtor soon learns they are no longer able to delay, hinder or stall meeting their payment obligations.
A Phoenix Business Debt Collection Attorney is able to work with a business and create a detailed plan on how to deal with their delinquent accounts. They are able to draft legally sound credit agreements, contracts and more.