Account receivables can begin to accrue amounts owed on them and become delinquent during inconvenient times, making it tricky to manage them. If you have a delinquent business account, you should not leave it unattended because it’s money wasted. You may need to hire a debt collection expert to help you get the money owed to you. And if you are collecting a significant amount of money, it makes sense to hire New York collection attorneys. Before you pursue debt collection, though, you need to consider your business situation. The following are some things you must think about before consider debt collection services:
The Amount of Debt
To determine whether or not you need outside help to collect amounts owed to you is the specific amount owed. Generally, the amount should be more than $5, 000. Usually, small amounts are not worth the cost and hassle of using legal channels and will often end up getting paid through non-legal methods.
Debtor Dependability
Before you take legal action against a debtor, consider the number of times they have paid on time or late with past invoices. For instance, if the debtor has been dependable with payments before, you may not want to take extreme actions against them for missing payment for the first time. However, if missing payment has become a habit, you may want to terminate service or contract and let a collection lawyer step in to help you collect what you are owed.
Whether You Have Done Everything
Before you hire a collection attorney, ensure you have exhausted other means to collect what you are owed. For instance, you have probably sent them letters or emails or give them several phone calls to remind them of their dues. If the debtor ignores your reminders or continuously promises to pay without follow-up on this promise, then, it may make sense to take more serious action against them.
Your Awareness of Relevant Law
When it comes to debt collection methods, federal law has set parameters on what you can use. You need to follow all regulations regarding collection techniques. This is an area a collection attorney can offer guidance to make sure your collection attempts are legal. If you decide to let an attorney collect debts for you, pick an attorney who has a good reputation. You want a lawyer who has successfully collected debts for various clients in the past.