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Why you need a professional to help you with your debt collection; or “Why using an attorney is better than a collection agency”.

Alford Law > Collection Litigation  > Why you need a professional to help you with your debt collection; or “Why using an attorney is better than a collection agency”.

Why you need a professional to help you with your debt collection; or “Why using an attorney is better than a collection agency”.

What can a collection agency can do vs. what an experienced collection attorney can do? A collection agency is basically only allowed to call a debtor and also write letters on behalf of the party who is owed the debt. They are not allowed to take any sort of legal action, file any documents in court or take any other action that would constitute legal services under the definition of the State Bar of Texas rules.

On the other hand, a knowledgeable attorney can take much more substantial actions. They can send a demand letter threatening to file a lawsuit at the end of the stated time period. The debtor is often very concerned when they see a letter from an attorney’s office knowing that the creditor has gone to the lengths required to get a law firm involved and they also know that the law firm can actually file a lawsuit against them. The law firm can then file the lawsuit against the debtor, send discovery, take depositions, file motions for summary judgment, go to trial and hopefully obtain a judgment. If the law firm obtains a judgment, they, unlike the collection agency, can apply enormous legal pressure to the debtor’s business. These efforts can include forcing the debtor to reveal under oath every asset they have, including everyone who owes them money, seize business assets, and even get a receiver appointed over the business. If a judge grants the request to appoint a receiver, then the debtor actually has an outside person working for the court and the creditor running the business and establishing control over all of the assets and income and spending of the business to work toward getting the debt paid. This of course can have a shocking effect on the debtor if they are facing this sort of legal threat and most of the time strong efforts are made to work out the debt.

If you want us to assist you in collecting your business debt, please click below to send us an inquiry or call with any questions. We are happy to give you an assessment of your situation at no charge. For example, we can analyze the statutes of limitations that may apply to your matter as well as look at other types of deadlines that might apply to a mechanic’s lien situation in construction law. There are very tight deadlines that apply to the filing of mechanic’s liens and sending the appropriate demand letters. There are online services that purport to show you how to prepare and file the notice letters and affidavits claiming a mechanic’s lien, but the actual process of preparing and filing those mechanic’s lien affidavits is much more difficult that it appears.

As most business owners probably already know, the longer they wait to collect the debt and the older the debt gets, the harder it becomes to collect it. The debtor’s business may be failing or being sold or any number of other factors can make it more difficult to collect the debts the older they get. That is why it is imperative to contact us today to get started on collecting your hard-earned money. You worked hard providing the services or goods to the customer and they need to pay. We have years of experience in knowing what legal pressure to apply to your debtor. If the relationship is an ongoing relationship, we know how to maneuver the situation lightly to attempt to preserve the client relationship while also exercising our legal authority to “encourage” them to pay. Since we take most commercial/business collection matters on a contingency basis, you don’t have to pay any attorney’s fees until we collect. If we don’t collect, you don’t owe us a dime for attorney fees. Why are we willing to do this? Because we are confident that we can collect the debt in most of the cases we take. Give us a call to find out what we can do for you.

 

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