When To Hire a Debt Collection Attorney

A debt collection attorney is another viable option to consider to recover your debts. There could be situations when you might need expert legal counsel.

Collection attorneys can advise you of all your rights, and obligations, as well as the legal aspects of credit and collections.

Many attorneys work on contingency fees, flat or hourly rates, or some combination. You'll want to discuss costs when talking with a debt collection attorney.

You might specifically want to consider an attorney if you have a delinquent customer who owes you a large balance. If you sell a high ticket item or service, an attorney may be a good solution.

Guidelines That Help Improve Your Collections

• Complete Credit Application Information
  Successful collections start with the credit application. It should contain important customer information: name, address, phone numbers, credit references, and corporate officers.

  If dealing with a corporate client, ask for personal guarantees of the individuals to prevent them hiding behind a "corporate veil."

  Include information that you retain the right to pursue legal and collections as a recourse in the event of a default on payment.

• Check Payment Issues
  If a customer pays you for less than the full balance due with a check and writes "payment in full" on the check, you could lose your right to collect the unpaid balance if you deposit the check.

Collection Attorney Tools

• Property recovery
• Obtaining judgments
• Out-of-court settlements
• Writing a debt collection letter
• Garnishment
• Sequestration
• Attachments
• Judgments

Conclusion

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