After making reasonable efforts to collect on a debt, the next step may include using a lawyer or debt collector. Proceeding with debt collection efforts will only make sense up to a certain point. If collection efforts take too long, a company or individual may start to lose money on top of what is already owed. To avoid a total loss or write-off of the debt, hiring a lawyer may be the best solution for resolving outstanding debt.
Reduce Collection Timeline
Lawyers who specialize in debt collection make effective partners. They employ legal remedies that can spur a company or individual into action to satisfy a debt. A company that isn’t paid for goods and services may lose money if too much time and effort are spent on collections. However, a lawyer will assist in creating a shorter timeline for collection efforts. If negotiation and communication with a debtor fails, a lawyer may decide upon a civil court remedy. Unfortunately, sometimes a legal solution is the only way to resolve unpaid debt. Most importantly, the legal industry has a voracious reputation. Hence, it’s quite possible that a law firm may not even need to utilize the court system to resolve a debt collection issue. So, what option is better, a lawyer or debt collector?
Strong Collection Options From a Lawyer or Debt Collector
Should you hire a lawyer or debt collector? A debt collection agency may use a variety of tactics to convince a debtor to pay a bill. However, agencies cannot file a lawsuit on a company’s behalf to collect those debts. Employing a law firm for the purposes of collection allows the parties to move immediately toward mediation or a civil suit. And, a law firm can act in an aggressive manner. This will ensure the quickest resolution possible for debt that is turning into a burden for a company.
Avoid Bad Debt Write-Offs and Retain Company Image
The Great Recession looms in the minds of many individuals and companies today. Unfortunately, the common practice of writing-off bad debts has made it easy to think that this solution is easier and simpler than trying to collect on overdue debts. When a company feels that it can no longer reasonably expect to collect upon a debt, the solution may be to write-off the balance. This action may reduce a company’s tax bill. However, the value and reputation of the company may suffer if too many debts are written-off. Consider the reputations of major banks that had to write-off billions of dollars in bad loans, mortgages, and credit in 2009. Their reputations and profits suffered in the aftermath.
Collect Your Outstanding Debt with Georgia Debt Collection Lawyers
So, should you hire a lawyer or a debt collector? Unfortunately, collection efforts without an attorney might turn into a long battle with no end in sight. Additionally, significant money could be spent on collections. And, unpaid debt sometimes ends up costing more than money in the long run. Introducing a law firm into the process is a viable and immediate option. The debt collection attorneys at Howe and Associates can help you through the process of collecting the money you are owed. Contact the office today and find out the next step you should take.