Every company experiences customers who do not pay after receiving goods or services. This can be a challenging experience for a company who needs the revenue to stay in business. A company may waste valuable time and resources trying to recover this debt. There are many advantages in hiring an attorney to collect these debts.
Advantages of an attorney for commercial debt collection include:
- An attorney can gather important information about the debtor. They can obtain a credit score and provide information that can be used when trying to collect a past due debt.
- An attorney can submit subpoenas to the court for important document searches. This can provide information on a company’s bank accounts and other assets. This can show if a company has enough assets to satisfy a judgment against them.
- It can be easy for a business to see a debt collection letter and ignore it. If a person gets a letter from an attorney, they are more likely to open it and take it seriously. An attorney letter can inform the debtor to their legal responsibilities and provide details of legal options that may occur.
- Personal service. A debt collection company collects debts in mass but an attorney offers personalized service.
- An attorney can file a lawsuit to collect the debt and threaten post judgement remedies of freezing bank accounts, attaching real estate and more to motivate a debtor to pay their debts.
- Contempt of court. An attorney can make a debtor appear in front of the court to explain their actions concerning the debt. It can be possible that the debtor is held in contempt of court and an attorney can request the debtor be incarcerated for a period of time.
There are many benefits of hiring an attorney for debt collection. They can offer many more advantages than a traditional debt collection company and can have success in collecting debt and helping a company maintain their bottom line.