Your New Jersey collection lawyers will know how to proceed when you are trying to recover unpaid debts.
A Collection Attorney NJ Will Assist You in Pursuing Payment
It is not uncommon for businesses to have trouble collecting debts from customers, patients or clients. Some businesses simply give up and chalk the failure to pay up to experience. However, there are times when these debts can be recovered if the pursuit is handled correctly. There are certain strategies that your NJ collection attorney will use to help you recover unpaid debts. They include the following:
1) Write in addition to calling.
It is more likely to be able to collect on a bad debt if you send collection letters to the debtor. There are several reasons why this can be preferable to calling. A debtor will know the reason for your call and might screen and intentionally ignore them. If you do manage to get the debtor on the telephone, they will not respond positively to your call. They might even give you a series of excuses such as the payment already having been sent even if it really has not.
2) Do not ask if you are going to get paid, ask when you are going to get paid.
Setting a date when you will be paid is a solid way to try and get the debtor into a position where he or she feels the payment must be made. Without a firm date, there is always wiggle room for the debtor to formulate an excuse. Their version of “tomorrow” is unlikely to arrive. A concrete date can avoid this. Start by suggesting the payment be made that very day and move on from there.
3) Be pleasant.
It is a good strategy to be courteous. By doing so, you are able to maintain the moral high ground. You might be able to get the debtor to pay if you are putting forth the impression that you are being cooperative and understanding. Finally, there are legal protections that debtors have that could be violated if you are too aggressive in your tactics.
4) Cooperate with the debtor.
Both you and the debtor would like to settle the debt so you no longer have to deal with one another. The calls you are making and letters you are sending are time-consuming. There will be stress on the debtor with worrying about the situation. Calling the debtor and working together to form a repayment plan can avoid an extended back and forth.
5) Be aware of the value of your time.
The time issue could lead to you making the decision that it is simply not worth it. The amount you would receive if the debt were paid in full is not enough to justify the time spent pursuing it. This is a rational determination. The reluctance to avidly pursue payment should not enter into the equation to the point of just walking away from the debt. Calculating what is owed and how much time and work will be spent getting it is a useful tactic. For example, if you are owed $1,000 and you are paying an employee $15 per hour to pursue the debt and the debt is three months overdue, you must calculate the likelihood of getting paid in comparison to how much it will cost. If it is a client who has been reliable in the past, then it could be worth it to continue trying to get paid. Your employee might spend 33 hours pursuing the debt before your company loses money and you might wonder whether it is worth the effort. If there is a chance to collect the debt in less time, then it is smart to consider it. Once it gets to the point that you are pursuing the debt out of principle and do not want to let the debtor off the hook, then it might be time to cut your losses.
6) Contacting a collection agency.
To save yourself the time and trouble of pursuing payment by yourself or having your employees do it, a collection agency can be of immense value. Collection agencies are able to pursue even smaller debts for clients who might otherwise have chosen to accept the loss and move on. Making the decision to use a collection agency can serve the dual purpose of freeing your time to build your business and work with clients, customers and patients who are willing to pay. It can also help you get the payments you are owed.
Call Qualified New Jersey Collection Lawyers
If you need help with collecting a debt, call (973) 265-6100 to speak to New Jersey collection lawyers at Snellings Law LLC today.