When to Consult with a Collections Attorney?

Answer 1

A collections attorney aids businesses in securing payment from deadbeat clients. The attorney is well versed in collections laws and therefore has better knowledge on how to effectively resolve delinquent accounts from clients who would not otherwise pay the debt. The process of hiring a collections attorney is arduous. It requires an attorney with specialized education in order to achieve the greatest results.

When to Consider Hiring a Collections Attorney

90 Days Past Due- If a client is 90 days past the due date on the first billing cycle, it may be time to hire a collections attorney. When an account is that seriously delinquent, it is safe to say they have no intention of paying. A collections attorney has everything necessary to collect the money. If the client has made an attempt to make a payment on the account, it should not be passed to the collections attorney until the next missed payment cycle.

Amount of Money Due- Since collections attorneys receive a percentage of the money that is recuperated, it is important to determine what amount of debt should be considered for his or her office. If the debt is below $100, it may be better to simply write the total amount off as a business loss. The money can be recuperated at a later date if the same client wishes to do further business with the company.

Why Collections Attorneys are Successful

People are afraid of attorneys because they know it could be the last stop before they are taken to court and a judgment is lodged against them. A judgment for failure to pay is serious and can literally halt any loans from other lending institutions. People do not want a judgment against them because it stays on court records and on the credit rating until the debt is paid off. It can then take many years to clear the bad information from the credit report.

Collections attorneys take a percentage of the money they collect for the company. They perform actions such as phone calls to the delinquent client, mail letters to the client and take the client to court if the debt becomes more seriously delinquent. Attempting to collect from a stubborn client who refuses to pay his or her bills requires a stronger arm to fight the battle. A collections attorney is the wisest choice for businesses to gain positive results.