5 Ways To Collect Commercial Debt
Small Claims Court
If the amount of money involved is modest, this an effective option for resolving disputes. In the majority of states, you only need to get in touch with the small-claim court where you live and request the required documents to file a claim in court. The process is fairly straightforward and the court will answer any questions that you might have. The paperwork is filed, the opposition party is served and the date to hear the case is set by the court. There are a number of advantages provided by small claims court. First, a lawyer is required to file the paperwork and you can represent yourself in small claims court.
Furthermore, filing fees are minimal, for instance, it only costs around $40 to process the necessary paperwork. The process itself moves fairly quickly. Decisions are usually given out the same day, but there are a few things you need to keep in mind. For instance, how much you can file for differs from one state to another. In Maine, the maximum claim is $4,500, but in Rhode Island, that amount drops to $1,500. Even so, you still have to prove your case; therefore you have to present your evidence along with other kinds of proper proof. It is very different from what you will see on “The People’s Court” or “Judge Judy” where they guide you step by step.
You were very careful and prudent, or so you thought. Everything checked out with the new customer or supplier and they seemed totally trustworthy. But somehow you are struggling to collect your payments. Perhaps the clients need to pay for products or services you delivered or maybe a supplier took your money but didn’t deliver the goods.
Are you panicking from the expensive lawyer fees you see in the near future? Stop and take a deep breath. There are a number of ways you can take action to collect your money without having to pay expensive lawyer fees. Small claims court is just one of the options available to you, but may not always be the best option.
Small claims court might seem like a blessing if you are owed only a small amount of money, but it comes with its own downsides. As the plaintiff in the case, if you lose, it might be almost impossible for you to win an appeal, whereas if the defendant loses, it will be much easier for them to win an appeal. This combined with the fact that you can be counter-sued in small claims court makes this by far, not your best option.
When it comes to avoiding costly legal fees, you can never go wrong with hiring an experienced low-cost commercial debt collection attorney. Since 1982 Commercial Receivers Incorporated has been providing its clients with efficient, low-cost collection services. We combine our stellar success rate with our low costs (as low as 10%!) to bring you the best collections experience in the industry. Contact Commercial Receivers Incorporated to get back more of what’s owed to you.