As a business owner, protecting your assets and maximizing profitability are of paramount concern. When you face issues with customers who do not pay, a New Jersey collection attorney can discuss options you may have short of litigation.
The Prerequisite to Collections Litigation
When you have creditors with overdue bills or who have defaulted on loans, it’s important to understand what options you have as a business owner to protect your company. As your New Jersey collection attorney can explain, formal collections procedures require a money judgment. In other words, a creditor cannot pursue actions such as wage garnishment, property seizure or bank levees without first obtaining a written court order indicating the amount of money owed and by whom. Therefore, in order to proceed to formal collections, a lawsuit must be filed and won. Sometimes, a creditor is left with no other choice. Your attorney can discuss ways to deal with debtors before it comes to that.
Options to Avoid Litigation
We can’t always predict which customers or loan debtors will ultimately present a collections problem. In many cases, the circumstances come as just as much of a surprise to the debtors themselves. Your New Jersey collection attorney will tell you that settlement negotiations are often the best legal option to avoid costly and uncertain litigation. In some cases, there is the added complication of a debtor becoming insolvent or filing for Bankruptcy. A skilled collections lawyer can negotiate on your behalf to work toward a manageable solution prior to litigation.
In addition to settlement, your attorney can discuss the possibility of entering into an installment payment plan with the debtor. While perhaps less desirable than payment in full, an installment plan can often help avoid expensive litigation.
In the event litigation can’t be avoided, your attorney can aggressively defend your collections matter in court. The more information you have on the debtor before filing suit, the better.
Further Legal Assistance with a New Jersey Collections Attorney
Discuss your collections needs with a skilled New Jersey collection lawyer. To make an appointment with the offices of Snellings Law LLC, call 973-265-6100 for your initial consultation.