April 18, 2019

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The Debt Collection Process

The Debt Collection Process is a complex series of events that can prove frustrating and time consuming — plus there are all sorts of debt collection laws that mandate what tactics you can and can’t use to get the funds you are owed.

As a business owner, you don’t have time to be chasing down debts. Hiring a debt collection law firm can minimize your stress and help your business collect on unpaid debts. Your attorney can take the lead on negotiating with creditors and ensure all of the laws are respectfully followed. In most cases, the payments will be made to your debt collection law firm, so there is a legal record of the repayment. Here’s a brief summary of the steps involved in the debt collection process:

Step 1: Attorney Hiring

After choosing your attorney from our list of debt collection law firms, you will send all information regarding the debtor to your debt collection attorney. Your lawyer will send official acknowledgement of receipt and review the information.

Step 2: Debtor Communication

The first action on the part of your debt collection lawyer usually involves a letter followed up by another form of communication, either a second letter or a phone call. You may consider giving approval to discount the debt in order to improve the likelihood of the debtor agreeing to repayment.

Step 3: Lawsuit

In the event that the debtor ignores communication attempts or denies any repayment proposals, your attorney can then file a lawsuit only after receiving permission from you.

Step 4: Judgment

Once a lawsuit is filed against your debtor, your debt collection attorney will seek to obtain a judgment (court order) where the debtor is legally ordered to pay. If a judgment is not achieved, your attorney can spearhead your case in a trial as a last resort.

Step 5: Garnishments

If a debtor refuses to pay a judgment that is court ordered, your attorney can start paperwork for a garnishment, meaning the debtor’s wages or bank accounts can be accessed for payment.

Set up a consultation with an experienced debt collection attorney in your area, today.