Businesses often have to work on credit, and it is not uncommon to come across debtors who refuse to pay. You can choose the standard means of reminding them time and again through letters, but when the payment doesn’t come through, you have to consider other options. Your best choice is to contact one of the New York collection lawyers, who can guide you through the process. In this post, we are sharing more about the role and importance of debt collection lawyers.
How can a debt collection lawyer help?
Sometimes, a debtor will only pay when legal action is taken. Your debt collection lawyer will help you evaluate your unique circumstances so that you can take a call on whether litigation will make sense. Your lawyer will initiate the process on your behalf, but remember that there are litigation costs, process servers, and other expenses involved. If the debtor is a company and the owners refuse to own up to the debts, the debt collection lawyer can go for an approach, where the corporate veil will be removed, so that
Not same as debt collection agencies
You may have heard of how debt collection agencies chase debtors for money. While their approach is more aggressive, there is no assurance that an agency will be able to recover the money for you. Eventually, the agency cannot take legal action or sue the debtor, although they can file a credit report. Most agencies just send letters and make numerous calls, hoping that the debtor will pay. The role of a debt collection lawyer extends much beyond that. They can ensure that judgments are enforced, all necessary rules and regulations are followed, and the money is recovered at the same time. When you have an attorney working for you, it is clear that you mean business.
Hiring the right attorney is important
Yes, when it comes to debt collection or enforcement of judgments, you need an attorney with specialized experience. You can ask a few questions like –
- What percentage of your practice is dedicated to debt collection?
- Have you worked with clients in my industry?
- Can you share a few references?
- What is your standard approach like?
- How do you charge for your services?
While hiring a debt collection lawyer will mean spending money, there is an extremely high chance that you will recover your big debts without much hassle.