Collections are a common part of operating a business as some customers may default on their accounts. When this happens, you should take action to get your debtor to pay what they owe you. The first step you must take is to send letters or make phone calls. However, what if the debtor refuses to pay or does not respond to you? In this case, things can get complicated, so you would want a collection lawyer in New York to handle the next steps for you.
Why Hire a Collection Attorney
To collect a debt, you can keep trying to collect it yourself, let a collections agency do the job, or hire a collections attorney. Often, hiring an attorney is the best choice. Here are the benefits of hiring a collections lawyer:
- Quick results. Attorneys have respect for the law. Letters from them have more impact than letters from a collection agency.
- Expertise. A collection attorney has extensive knowledge of the law. They use this knowledge to their advantage to help you get the money owed to you quickly and without complications.
- Availability of reliable tools. A collection lawyer has more tools they can use for uncovering the debtor’s assets. This can lead to faster payment of the debt.
When to Hire a Lawyer
Hiring an attorney is important if you have uncollected debts. However, if you are not sure, below are some signs it may be time to call an attorney:
- You are not getting any response from the debtor. If you have been making phone calls or sending letters to the debtor and are not getting any response from them, you may want an attorney to get in touch with them.
- You do not have the resources or time to collect the debt. Whether you have no staff to handle the debt issue or your staff does not have time to focus on this task, outsourcing the work to a lawyer allows your people to concentrate on what they are hired to do.
- You are collecting a huge amount. When an attorney recovers the debt, they get paid a certain amount. So, it only makes sense to hire them when you are trying to recover a huge amount of money.
Although taking legal action against your debtor may be a drastic step, it is usually important if your debtor refuses to pay their debt. With the threat of legal consequences, a lot of people won’t ignore your pleas.