When is the right time to take legal action in the debt recovery process?

Credit is a crucial part of any organization, be it small, medium or large.  However, in order to make sure the credit system in an organization works smoothly, debts owed should be paid on time. And when debt mounts up in huge amount, an organization may suffer. Since credit extension is an integral of every company, it is important to develop relations with borrowers who can easily pay back and are safe to deal.  This will minimize the number of defaulters and prevent tough time collecting money.

Debt collection can become overwhelming if you as a company are pursuing payments for a long time. In the initial stage, you can follow the normal procedure, like calling up the defaulters, sending them letters, follow up on the promised date of payments and so on. But if you find these things are not working and you have already invested more time, you should take help of an experienced debt collection attorney.

It has been noticed that many companies are a bit confused about the right time of hiring a lawyer for debt recovery. You should hire them when you have the idea that the debtor is not going to pay in an easy way. Most of the times it has been seen that the customers pay up straight away or in installments when they hear from a legal professional. You may have better chances to have good relations with your customers if you and your solicitor do not pursue the matter in the courts immediately but try to resolve the matter and collect the payment without going to the court.

Once you start to take a legal action to recover your unpaid debt, you should send a legal letter saying that you will take legal action if the payment is not paid. The letter can also be sent by your lawyer on a legal letterhead to make it more impressive.  Your law expert will ask you to provide you the evidence of the debt your customers owe you. The evidence may be anything, like the signed agreement or contact, letters, call recordings and more. It is always important to discuss the evidence in detail with your solicitor before taking any legal action. This will help your solicitor a lot.

So, you are planning to hire a debt collection attorney with good experience in debt collection and mechanics lien in Massachusetts? If yes, it is a good move. The legal expert will help you in the best possible manner.

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Created on Jan 14th 2019 06:19. Viewed 541 times.

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