If you are in debt or you are a business owner, you rely on customers to pay their bills on time so that you have your paycheck yourself. Sometimes your clients do not pay, but you have to meet your payroll which is difficult. When it comes to collecting debt, you should hire a debt collection defense attorney who will assist you in getting your money back.
Ways in which debt collection attorney can help
There are several ways by which a debt collection attorney can help in getting the money you are owed which are mentioned below.
They know the law.
Until you spend your time knowing about debt collection laws, it is very unlikely that you are familiar with them. When you need to collect the debt that you are owed, these attorneys will follow the law to a tee. This means you do not have to worry about how to deal with collecting debts or training your finance department. When you hire a lawyer, there is no reason to be tensed about getting sued by any client over the debt collection efforts.
They sound formal.
Hiring a collecting agency will not do a lot for the formality of the situation. Past due clients will blow off the collection agencies because they do not have any formality behind their name. On the other hand, if you hire a debt collection attorney, they will assist you in prioritizing the past due clients. When these clients see the involvement of an attorney, they will simply believe that they are going to get sued and will try to settle past due debts.
The same company that handles the whole debt collection process
The biggest question is whether businesses tend to opt for a collection agency or a lawyer. However, a debt collection lawyer has no power to sue a past due customer under any circumstances. Even if they threaten to sue the client, it will violate the law. On the other hand, a collection attorney can sue a client and receive the past due funds that are owed to you. Therefore you can take help from an attorney from the initial stages to the end process. Keeping the entire process in the same place will ensure nothing gets missed.
Picture perfect documentation
You must follow some debt collection practices before you sue a client for past dues. The practices are stated both in federal and state laws. Documenting the steps is necessary so that the case can be proven in claims court. The documentation will be picture-perfect when you hire a lawyer.