Debt Collection Process

Commercial Debt Collection involves identifying a debt, locating the appropriate responsible party or parties, seeking repayment, establishing a lien, and enforcing that lien to compel repayment.

1)   Identifying the debt: using documentation provided by you, the creditor, we first look at how much money is owed in principal, then try to figure out what kind of interest, penalties, fees, and other money is rightfully owed on the principal.  Once we identify the amount of money owed, some decisions can be made on how to proceed, what court to file a suit against the debtor, and what means are best used to encourage early repayment.

2)   Locating the debtor: it is often challenging to find out where a person lives or where a company does business.  We research the person or company to try to make sure we sue in the right court and that we are addressing the appropriate person.

3)   Seeking repayment: sometimes, it only takes the right letter addressed to the right person.  Just because a client doesn’t pay a bill, it doesn’t have to mean the relationship is over.  We attempt to contact the responsible people involved with the debt and offer them the opportunity to repay the debt at the lowest cost available to them.  Asking for voluntary payment is the best first step, and sometimes it matters who asks and who is being asked.  Courts like to see that every reasonable effort has been made to settle a matter before a lawsuit is filed.  Following good sense tactics in seeking repayment can often save the creditor time and money and, in the long run, is something that nearly always strengthens the creditor’s position.

4)   Establishing a lien: property can be taken to satisfy a debt, but it takes some time and careful attention.  Just because someone owes money doesn’t mean that the creditor can just take his house or car.  Liens against property can be established in several ways, but in all cases, some care needs to be paid to the way in which a lien is established and the time limits imposed by the form of lien.  A lien creates a legal right to property and is an important step in convincing a debtor to pay or in asking a court to take property to satisfy a debt.

5)   Compelling repayment of a debt: if all else fails and a debtor is unwilling to voluntarily repay a debt, a court can grant the creditor’s request to take identified property, sell it, and use the money to pay back the debt.  The closer a creditor gets to this, the more likely it is a debtor will decide to pay and avoid the costs of collection.