Houston business owners are doing well if they never need to utilize the services of a Houston business debt collection attorney. It means their customers pay on time, and that means their business finances look good in terms of invoices. Other Houston business owners want to know if it’s time for them to contact a Houston business debt collection attorney to help with the collection of debts owed to them by their customers. It’s not ideal to find yourself in this situation with a business to run, but it’s sometimes necessary.
Other Houston business owners want to know if it’s time for them to contact a Houston business debt collection attorney to help with the collection of debts owed to them by their customers. It’s not ideal to find yourself in this situation with a business to run, but it’s sometimes necessary.
A debt collection attorney is an attorney that specializes in collecting debts on the behalf of their business clients. They usually want to work with business owners who are seeking payments of at least $5,000, and they want to help you get the money you’re owed for the work you did for that customer. There are many business owners in the Houston area unsure when it’s time to call and what will happen when they hire a debt collection attorney. The answer is simple, but the decision is personal.
There are many business owners in the Houston area unsure when it’s time to call and what will happen when they hire a debt collection attorney. The answer is simple, but the decision is personal.
Is it Time?
The biggest question business owners ask has to do with the timeframe they have to call a business debt collection attorney Houston. Is there a statute of limitations on debts, or is there a timeframe a debt must go unpaid before an attorney is called? There is a statute of limitations in Texas regarding debts, but it depends on the type of debt it is so the answer to this one is gray. Since this limitation is quite long for most debts, you won’t want to wait this long to begin with.
You also don’t want to call too soon. It’s imperative to understand issuing a due date with an invoice is necessary. When a customer fails to pay by that date, it’s not grounds for collections. In fact, many customers didn’t pay for honest reasons. Perhaps they grabbed the mail from the car on the way to a child’s sports game and it fell between the seats. They might not even know this bill exists if that happens. It could have been lost in the mail, it could have been a simple mistake and someone forgot all about it.
Everyone deserves a second chance to correct a mistake they might make. This is why you should send a second invoice with a second due date. You can charge a late fee if you’d like. Many people see the second notice as a form of warning, and they pay quickly. If you get to the point you need to send a third notice, this is when it’s time to get serious. Third and final notice is not a bad idea, and a line about contacting an attorney to handle the account at that point is helpful. If the third notice goes unpaid, it’s time to contact an attorney in Houston.
What Does An Attorney Do?
You haven’t been able to collect debts owed to you by customers, so what will an attorney do to collect the money your customers haven’t paid? The simple answer is intimidation. Most attorneys need not doing anything more than sending a letter to a customer to inform them their account has been sent to their collections office for legal recourse. This letter provides your customer approximately 10 days to respond either disputing the debt or to pay the debt or work out a payment arrangement.
The majority of people are scared of attorneys and don’t understand the law. They don’t realize they’re not currently being sued or that many business owners won’t bother with the expense of suing them for a small sum of money. They are afraid legal action is being taken that might ruin their reputation, their companies credit or finances, and their lives. Not to mention they will have to retain counsel to defend the collection lawsuit, which is costly. As a result, they make the decision to pay the debt they owe. In short, debt collection attorneys intimidate your customers into paying their bills.
The Advantages of Hiring a Business Debt Collection Attorney
Your time is valuable as a business owner, and spending so much of it tracking down customers who owe you money is not conducive to success. An attorney gives you peace of mind knowing the bills are being handled and you have the time to focus on running your business once again. If a lawsuit is necessary, you can charge all the fees and court costs to the person you’re suing, and you don’t have to do any of the hard work. It’s a win-win situation for business owners in Houston, and many people take advantage of that. You have a right to the money owed to you, and to hire an attorney.