How a lawyer can help your business get paid collections
Posted by: albright on Fri, Mar 17, 2017Share this post
All business operators understand that collecting outstanding debts can be a time-consuming and frustrating process. Attempting to handle the collections in-house takes time that eventually amounts to even more lost money when it takes away from productivity. Many business managers opt to retain a third-party collection agency to perform this service, but there are limitations on the effectiveness of a standard collection agency. This very often the case when the agency is attempting to collect a large debt or dealing with a particularly difficult debtor. Ultimately, the question becomes should the creditor use a collection agency or opt for retaining a Las Vegas litigation attorney?
Limitations of a Collection Agency
Collection agencies can perform the necessary contacts with the debtor with respect to identifying the problem and requesting a payoff plan, even when they cannot collect the entire amount all at one time. Any agreement between the agency and the debtor could be a valid enforceable contract, but the collection agency rarely has the capacity to enforce the contract in a court of law. Collection agencies can also perform repossession tasks when a debt also includes some form of collateral property in certain instances, especially when there is an existing lien on that property. Otherwise, all a collection agency can actually do is continually contact the debtor, which could also become a component of any legal attempt to collect the outstanding debt and provide a defense for the debtor.
What an Attorney Can Do
Attorneys have an option that collection agencies normally do not. They can conduct the initial contact, which can be followed up with a registered letter stating the exact legal plan of action if the debt is not satisfied. These legal actions can include taking the case to court for an order of payment and requesting a garnishment of wages. Unemployed debtors who own real property could have that property attached to the limit of the debt, sometimes being forced sell the identified clear property.
Any business in Nevada that is in need of having outstanding debts collected should contact a Las Vegas litigation attorney from Albright, Stoddard, Warnick & Albright for a full evaluation of their collection options.