Here we are at the last of our 5 ways to engage in Commercial Debt Collection, without an attorney.
Think about contacting the credit bureau in your state if you are not able to collect money from a debtor. They’ll show you how to put the debt on the credit record of your debtor. Although this might not seem very comforting now, it might be a valuable leverage in the future when a lender does not provide a loan to the debtor due to their bad debt. This might be a good tactic to use on your debtor as they will want to keep their credit report clean.
Whatever option you go with, you have to know exactly how far to push the boundaries. For instance, although people might claim not to have the money outside the courtroom, look closely at what is said on the legal record. You’ll get a clear picture of the debtor’s financial status and if you should go after them for the entire amount. If you find out there are sufficient assets, go after your fair share. But, if the legal documents don’t show much assets and your debtor offers 50 cents on the dollar, it might be an offer you should seriously consider.
Knowing when to involve a lawyer is critical. For example, if there is a large amount of money involved – over what your state’s small claims court allows – hiring a lawyer might be worth the extra cost. Be attentive to your debtor’s attitude, particularly if there are large sums of money involved. You should get a lawyer involved if the debtor is obstinate or difficult to deal with and if your commercial debt collection agency recommends escalating the matter to court.
However, if the money owing isn’t too big and the debtor is belligerent, it might be less stressful to let the matter go. There are times when the amount is too low to justify a lawsuit, the debtor is too belligerent, and your commercial collection agency has hit a wall, that you might consider writing the amount off, if for no other reason, your own mental health. It is always good business practice to quickly resolve the issue and go on to making money in other areas of your business.