If you can’t collect your debts as a business owner, your company isn’t long for the open market. Without a steady income stream, your own bills may fall behind and you wind up in the same position and those defaulting on your own invoices. Collecting business debts sometimes requires the services of commercial litigation attorneys like us – but how do we do it? How can a legal team assist your business collect on bills where your company hasn’t had the greatest success? Often, it’s the strategies your own company employed that’s sets the table for us to clean up…so to speak.
Avoid Harassment at All Costs
It’s easy to let your emotions get the better of you when attempting to collect a debt. They owe your company money, and they’re refusing to pay. Frustrating doesn’t begin to describe the sensation. Leave one phone call a day communicating the vendor or person owes your business a debt, but don’t threaten them with legal action or use foul language. Maintaining a professional air can help our attorneys when they go to work collecting your debt because you haven’t violated any state or federal statutes – particularly the Fair Debt Collection Practices Act.
Write Demand Letters to the Debtor
A phone call is easy to ignore, but a daily stream of letters to their doorstep notifying them of the debt provides additional tangible record of money owed. Demands for payment in writing should not contain threatening language, but it does give you a chance to set a due date before you officially begin “escalated” actions against the debtor. That action is usually bringing our law firm in to pursue the commercial debt on your behalf.
Commencing Commercial Litigation against Debtor
When our Pennsylvania commercial litigation lawyers go to work for your company, we can perform many of the same actions you’ve already attempted – phone calls and demand letters – but with our firm’s letterhead at the top of all documents. The majority of cases, just the threat of an aggressive group of litigators getting involved in the debt collection process is enough to force a settlement. Do not attempt to impersonate attorneys in an attempt achieve a similar effect. That’s illegal.
If our initial attempts to secure payment are unsuccessful, we can file a motion for summary judgment in your company’s favor. This action requires the debtor to appear in court and answer for the amount owed. If they don’t show, we win. Even if they do show up at the hearing, armed with all the information you’ve given us regarding your attempts to collect, we’ll have maximized our chances for success. Armed with a judgment, we can pursue assets of the debtor, including garnishments and leans of real property, as a means to secure the money your business is entitled to.
If your company is having difficulty collecting a business debt, call our law firm immediately to discuss the ways we can assist in the collections process.