If you own a business and are struggling to collect money you are owed from a customer, supplier or someone else, hiring one of our collections lawyers is an excellent first step. As you have probably already learned, people find it easy enough to ignore requests for payment from business owners and employees. Collection agencies do little more than harass debtors, which rarely produces the desired results. When you hire our firm, we will use a loan collection process that will increase the odds of receiving payment in full.
Types of Loan Collections
The first step we take when attempting to collect loans is determining the type of loan that is involved. It is crucial to distinguish between consumer debt and commercial debt. The former is typically incurred by a person for personal, familial or household purposes. The latter is usually incurred by a company while paying for goods that are needed during the course of business. To understand which state and federal laws apply to collecting the debt, we must know which category it falls into. It also helps to understand whether it is a one-time loan or an ongoing credit relationship of some kind.
Steps Your Collections Lawyer Will Take to Collect the Loan
Your attorney will begin by reviewing all of the documentation that is related to the loan. Therefore, keep copies of all paperwork, including past payment records, credit agreements and any correspondence. This information will be used to determine the best collection strategy. Unlike collection agencies, whose strategy is typically to harass a debtor until they get tired of it and start paying–which rarely works–a lawyer will make demands and then follow up on them by filing a lawsuit. Many times, a formal demand letter is all that is needed to show the debtor that you are serious about collecting what is owed. If that doesn’t work, serving them with a lawsuit that includes not only the debt that is owed but attorney’s fees and court costs, often does the trick. If that fails but a judgment has been made, the attorney can take aggressive enforcement actions, including asset seizures, liens and garnishments, to collect what is owed to your business. These steps may take a little time, but they tend to be very effective.
Hire a Collections Lawyer Today
If you have been trying to collect money that is owed and getting nowhere, call (973) 265-6100 to be connected to the skilled collections lawyers at Snellings Law LLC today.