Businesses in New York often have to deal with debtors who refuse to pay on time. It can be frustrating and overwhelming, especially if yours is a business that depends largely on regular cash flow. While debt collection agencies can work on your behalf and chase debtors for repayments, they cannot take legal action. So, do you need to hire a collection lawyer in New York? We have a few pointers below for your help.
The role of collection lawyers
If a debtor refuses to pay or adheres to tactics that make it impossible to collect money from them, a collection lawyer can help take legal action. From pursuing debtors to tracking those who have a common name or have gone incognito, they will do it all. Attorneys usually charge for each hour of work, and it also depends on whether you need court representation. Some collection lawyers specialize in certain types of industries and sectors.
When you need a debt collection attorney
When the matter is likely to go to court. If you have been chasing the debtor for a long time, you may need to consider getting a judgment. Unfortunately, a considerable percentage of these judgments go uncollected. While you can represent your business in court, it is wise to have a debt collection attorney who has expertise in the field and can help you get a favorable outcome.
When you need to send demand letters. If you expect the case to end up in court but wouldn’t want to sue the debtor, you can send demand letters. These are documents that you can send to debtors asking a certain amount, stating that you won’t sue them if they agree to pay that. Many times, these demand letters are enough to trigger a debtor into repaying the debt. Your debt collection attorney can help you write these letters.
When you have big debts. If you have debtors who owe you a considerable amount of money (say $5,000 or more), you should consult an attorney. Because the amount is huge, what you pay for the debt collection attorney’s work is usually worth the price.
When your debtor is a huge company. Big companies have credible resources and would do anything to delay payments, especially when there is no intent to repay the debt. If you are up against a giant debtor, lawyering up is always a good idea. A skilled debt collection attorney can help you handle corporate debts better.
Call a lawyer now for more information.