Whether you are a fledgling entrepreneur or have been in business for yourself for a number of years, many reasons exist to hire a professional debt collection attorney to handle your past due accounts.
The majority of those who own and operate their own business become familiar with the difficulties involved in small business debt collection at some point. Many attempt to collect monies due on delinquent account themselves, and they often completely give up when the task seems insurmountable.
The Fair Debt Practices Collection Act (FDPCA) of 1996 outlines specific guidelines that must be followed by the party who is attempting to collect a debt. Those who fail to adhere to these guidelines run the risk of having the debt declared null and void by a court of law, and today’s savvy consumers are likely to be highly aware of what debt collectors can and cannot do.
Small business owners and managers often turn to debt collection agencies to handle problem accounts, but agencies are limited to making calls and writing letters, which are not always effective collection techniques when dealing with chronically delinquent consumers.
Agencies often work in contingency with debt collection attorneys on cases involving $1,000 or more when debtors are reluctant to pay, so why not cut out the intermediary and hire a debt collection lawyer yourself? You will save money, time, and get better results. Other benefits of hiring an experienced debt collection attorney include:
- The Intimidation Factor. Letters from collection agencies often end up in the trash unread, but correspondence from attorneys is more noteworthy. The average consumer is far more likely to be responsive when contacted by a lawyer than by a collection agency.
- Expertise. Experienced collections attorneys know how to trace assets that the debtor may have hidden. Attorneys can also arrange for subpoenas and perform document searches to disclose bank accounts and other assets debtors may have that can be used to satisfy a judgment.
- Customized Service. Collection agencies operate largely on rote while an attorney customizes his or her game plan to complement your particular situation. As members of their state bar associations, attorneys are also required to practice due diligence on behalf of their clients, meaning that skilled collections lawyers exhaust all possible avenues to get results.
- The Right Tools. Tools available to collections attorneys include wage garnishments, property foreclosures, and bank levies. Most of the time, these scenarios are enough to convince the debtor to pay, but if not, an attorney can follow through with these procedures on your business’s behalf.
Another major benefit of hiring an experienced debt collection attorney is that they generally work on a contingency-only basis, meaning they are not paid until you are. Most collection agencies charge an upfront premium as well as collect a percentage of any forthcoming payments.
To find out more about the benefits of hiring a small business debt collection attorney, contact the McHughes Law Firm at 501.376.9131 to schedule a free consultation.