Category: Debt Collection Lawyer Atlanta

When a corporation incurs a debt there is no personal liability. In other words, the corporation is protected by a corporate shield.  The corporate shield says that the officers and shareholders are not personally liable for the debt. In this article, Atlanta debt collection attorney Richard Howe discusses what it means to pierce the corporate veil or bypass the corporate shield.

Deposing the Corporate Officers

First of all, during debt collection we never stop when a debtor claims to be insolvent or defunct.  As an experienced debt collection law firm, we always dive deeper to help our clients collect their money. We bring the corporate officers and shareholders in for depositions. And, we force them to reveal their assets. After the deposition, we determine whether or not we can proceed with an action to bypass the corporate shield.

Georgia has a very strong pierce the corporate veil statute. Hence, it allows you to pierce the corporate veil and go after the shareholders or officers individually. Items we look at include such things as whether they funded the corporation properly or if they commingled funds.  Insolvency & commingling are two of the most common reasons and legal avenues to pierce the corporate veil and hold a shareholder liable.

Howe & Associates Can Help You Bypass the Corporate Shield of Your Debtors

Founded in 1985, Howe Law Firm is an Atlanta debt collection civil trial law firm, with over a combined 120 years of litigation and trial experience. For over 25 years, Howe & Associates has been committed to providing high quality legal representation. We are real trial lawyers seeking full justice for real people. So, if you are a business trying to collect a business debt, contact our firm for a free consultation. Find out why our experience and value make our law firm the best choice to handle your collection claims. And then, let us advise you on the best way to collect the bad debt.

A debt collection attorney can make sure your business stays protected at all times. If you live in Georgia and you have a lot of problem clients, you may need to consult with a debt collection law firm. This is where you can get the help you need especially if a certain customer refuses to pay for your goods or services no matter how much you try to reach out.

Avoid Losses With a Debt Collection Attorney

Most businesses that sell services or products do not want to deal with collections. Customers may have received the service and product, but upon consumption, they did not find them enjoyable. This is enough reason for them to make a decision not to pay. This is simply frustrating to the business. A single small debt can be considered as a big loss depending on the good or service given.

The Presence of a Lawyer Commands Respect

Hiring a debt collection attorney will somehow reduce the hassles a problem client may give. For instance, the presence of an attorney for collecting debt creates an aura of professionalism when dealing with problem clients. Unlike collection agencies, attorneys have a professional style that will reflect well on your business. Clients look up to attorneys, too. They respond much faster to attorneys in comparison with the letters, phone calls, or visitations of a collection agency. Collections agencies may sometimes be rash and rude and may resort to what many people call harassment. This will not happen with attorneys because they know exactly what steps to take. They can talk to people in a professional manner without harassing them. In short, these lawyers are excellent negotiators.

Experience Quick Debt Collection

Businesses must be practical when it comes to collections. A debt collection attorney can help a business avoid total loss in a client’s bankruptcy. The right actions must be taken in order to have profits, and time is not just spent on waiting. They know that every minute is an opportunity to earn profits for the success of the business. All clients must be held accountable whether or not they found the good or service agreeable to their tastes.

Attorneys know the ins and outs of legalities. This knowledge is something that collections agencies do not possess. The law is quite complex, and there are laws that may sometimes bind the hands of the creditors in collecting late payments. With the help of a good attorney who understands the law, you and your business get the protection you require in times like these.

The basis of a successful business does not mainly depend on how many customers it has. It may have many, but the huge number is useless if those customers are not paying what they owe. Surely this means that your business is not generating revenue. You should never let your business be overshadowed by debts because of nonpaying clients. Get the assistance and guidance you need from a knowledgeable debt collection attorney who has your best interests at heart.

If you are a business owner, you know the pain of collecting a debt from a client. Since most businesses pay for services received, it’s a natural tendency to think this will not be a big problem. Unfortunately, it’s often a cause of significant income loss. Debt collection also creates unexpected loss of man hours in the collection process. Proper professional and courteous communication can often solve these problems while they are small.  Once the problem becomes larger and the time since the debt was originally owed increases, the options when collecting a debt from a client become more expensive and complex.

Types of Late Paying Customers and Clients

In general, B2B debt collection has to do with collecting debt from a client who falls into several categories.

• Deadbeat customers and clients that will go to any length to avoid paying.
• Clients that tend to have an influx of payments due at the same time and decide to delay paying some, while paying others.
• Business owners who are suffering some sort of financial crises that creates a cash flow problem.  They may want to pay but just don’t have the money when the bill comes due.

As a business owner, it’s easier to deal with the clients that fall into the last two categories above.  Often a few phone calls, and arrangements for a modified re-payment plan can make all the difference when collecting debt from a client.  These clients often want to pay something but are afraid to ask for a temporary arrangement.  Consider opening this door since most of these clients have a history of making good payments with you.  And, they are potentially long term customers going forward.

The first category, deadbeat customers and clients, is more challenging and requires a specific plan with escalation options.  It’s critical to act quickly and be both consistent and persistent in your efforts when collecting debt from a client.  Below are some recommended guidelines to consider.

Tips for Collecting a Debt From a Client

• Avoid harassing the people that owe you money. This is both a good customer service policy as well as a good legal policy. If your actions can be considered harassing, you may wind up losing a customer. In the worst cases, you could face a legal challenge. If you call your debtors, be sure not to leave more than one message per day, and never threaten or speak ill of a debtor.
• Keep phone calls short. To keep phone calls short, be sure that you are on message, short and formal. Do not imply that failing to make a payment is the same as a personal failure. Stay calm during the conversation, but always be clear that there is a debt that needs to be paid.
• Write letters. The letters that you write to your customers and clients that owe money are called demand letters. You should be sure to send these in addition to making phone calls. Save copies of each letter you send. They may be useful if you have to go to a collections agency.
• Get a collection agency to write demand letters. Collection agencies are professionals when it comes to collecting debt from a client. Therefore, it is no wonder that they write great demand letters. Many collections agencies offer this letter writing service at a fixed cost. You will normally get a series of letters to mail, each one escalating in intensity.
• Offer to settle for less than is due. If you think that a debtor would be willing to do so, you may want to offer to settle for less than is due to your small business. This is an often used strategy on clients and customers that have no real hope of paying off the debt they owe. This settlement should be made official in a legal document that shows a payment of less than is due that satisfies the entire debt.

Hire a Debt Collection Lawyer for Help

Here at, Howe & Associates, we specialize in collecting a debt from a client.  Our team of experienced debt collection attorneys know the Georgia law, and have a long proven track record of getting results for our business clients. Contact one of our attorneys today.

There are times when business owners feel the need to call in the “big guns” to collect outstanding debt.  Should you call a debt collection agency or law firm for your collection needs?  How do you know they are legitimate and follow the laws that are in place to protect the debtor and the entity owed the debt. Here are some steps business owners should consider as they are contemplating their next moves.

First, Exhaust Your Other Avenues

If you have a debtor who’s behind on their payment, don’t make a debt collection agency or law firm your first course of action. This come off as overly aggressive. And, you’ll be immediately sacrificing any hope you have of getting paid in full. After all, a debt collection agency or law firm will charge fees if they secure payment for you.

So how do you exhaust your other avenues? In truth, what you’ll be doing is a lot of what the debt collector themselves will end up trying. You will use letters, phone calls, payment restructuring, and, if necessary, a discounted debt to at least get some return on what you’re owed.

Start the process by being polite and escalate the situation with professionalism.

Next, Decide Between a Debt Collection Agency or Law Firm

So your letters, phone calls, and entreaties got you nowhere? It’s time to enlist the services of a professional. But which professional do you hire: a lawyer or a debt collection agency? For starters, it’s always a good idea to get the counsel of an attorney. They can advise you whether pursuing the matter through civil court or a collections agency is worth the time and expense. Moreover, they will often write demand letters for you on legal stationary. This sounds like a small thing, but it isn’t. Sometimes, a professional correspondence from a practicing attorney will motivate your debtor to pay up. After all, debtors don’t want to end up before a judge, explaining their motives for not paying you.

If your attorney’s letters go unanswered, you need to decide whether you’ll proceed with a collections agency, a lawyer, or drop the matter entirely. If your debt is fairly large and you’re willing to head to court for a judgment or lien, then a lawyer might be your best option.

On the other hand, you could hire a collection agency. Agencies have automated systems that follow up with your debtors. With so many different collectors out there, you can likely find the one that fits your business type or your debt size. Agencies are a dime a dozen, and a lot of them will use automated systems and auto dialers to attempt to collect your debt.

Then, Choose the Right Professional

If the debt is large or the situation is complex, you should consider finding a professional debt collection agency or law firm.  When considering an attorney, you should ask yourself the following:

• What’s their track record?
• Do they specialize in your specific debt?
• Can you speak to their references?
• Will they represent you in court if it gets to that point?
• What is the fee structure and how will you get paid?

Make sure you get the answers you need from any debt collection agency or law firm. Ask the attorney what their strategy will be and how they follow up with you.

The Law Firm of Howe & Associates has a team of professional debt collection attorneys and paralegals. They have years of experience and have a proven track record of getting results fast. Contact us today.

Collections are not the kind of business that most companies want to deal with when selling services or product. Unfortunately, some clients or customers over commit themselves. They create debts and accounts receivable that they have to pay. When these commitments are not honored in a timely manner, a business cannot afford to ignore them. The businesses have to pursue collections both to protect the business as well as to make sure an errant customer doesn’t get away with a practical theft of goods or work provided. Read on to learn how to do collections right.

Move Quickly to Collect

A collections lawyer makes a huge difference in how fast and quickly a business can successfully close past due accounts. The loss of revenue can add up quickly over time; so, the use of a good attorney makes a big difference in ensuring that cash flow is not negatively delayed. Doing otherwise can be costly. Delayed revenue cash flow can result in reliance in more short-term debt which can be expensive with interest charges. It can also cause a business to delay key business decisions that would have allowed a company to grow sooner.

Many problem customers often wait until a serious contact is made regarding an owed account. It’s a delaying tactic often used to help their own cash flow at the expense of the business they took product or services from. By deferring off the expense while gaining needed resources and support, the problem client gains a momentary advantage. The hope is that doing so will eventually create enough cash to pay the bill later. In practice this doesn’t happen. Most often, the problem client continues to dig deeper into more and more debt with different business relationships. That’s not good news for an accounts receivable holder because eventually bankruptcy wipes out any ability to collect whatsoever. At this point it’s too late to do collections right.

Hire an Aggressive Collections Lawyer to Do Collections Right

With an aggressive collections attorney in Atlanta, an owed business doesn’t have to wait and wait. It can proactively go after a problem client and often secure payment long before it would happen on the natural. This is how you do collections right. Even when in financial trouble, most problem businesses don’t want the headache of a forced lawsuit if they can avoid one. They will often pay off the account with the strongest likelihood to trigger a seizure at the expense of others still waiting for business courtesy.

While this may not seem equitable to all owed, a business with outstanding accounts receivable from a problem client can’t afford to be altruistic. Winning a collection before others often means avoiding a total loss in an eventual bankruptcy proceeding. Most collection services by attorneys will take their fee from the collections successfully won. If there is no collection, no fee applies. It’s a basic principle that drives effective collection, and those who are regularly successful at the practice honor this principle consistently.

Three Good Reasons to Hire a Collections Attorney

• Problem clients respond much faster to attorneys than basic requests for payment.
• A company needs to be proactive in collections to avoid total loss in a client’s bankruptcy.
• Too many accounts receivable outstanding can negatively damage a company.

Do Collections Right, Contact Howe & Associated Today

Don’t let your business become another statistic of numerous customers but little revenue actually coming in the door. Use an aggressive collections attorney in Atlanta when necessary and ensure your business’ actual success. Contact Howe & Associates to begin the process of collecting your debt today.

Howe & Associates has been handling the collection of debts for companies throughout Georgia since 1985.  It is our firms experience that the older the debt, the worse chance to recover it.  Therefore, we recommend that you seek to recover what is owed as fast as your company can.  If you run into a situation where you believe that you are getting the run around, then it may be time to seek legal avenues to collect this debt.  Our attorneys are available to provide a free consultation and try to answer any questions your company may have regarding any debt collection matter you are currently facing.  Call us at 678-566-6800 or tell us about your case here.

Georgia has a very strong pierce the corporate veil statute and allows you to pierce the corporate veil and go after the shareholders or officers individually.

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When a corporation incurs a debt there is no personal liability. In other words, that’s the idea of the corporate shield. It says that if you’re a corporation and you incur debts then the officers or shareholders are not personally liable for the debt.

When Can We Proceed with A Pierce the Corporate Veil Action?

Our office, whenever we have a business debt collection matter, we never really stop at the point where a debtor says we are insolvent or we’re defunct. We always dive into it, we bring them in for depositions, we force them to reveal whatever assets they have. At that time we determine whether or not we can proceed with an action to pierce the corporate veil.

Piercing the Corporate Veil in Georgia

Georgia has a very strong pierce the corporate veil statute and allows you to pierce the corporate veil and go after the shareholders or officers individually. It allows us to go after their individual assets. If they did not fund the corporation properly or they commingled funds we can go after the officers and shareholders individually.

Insolvency & commingling are two of the most common reasons and weapons to be able to pierce the corporate veil and hold a shareholder liable.

Howe and Associates was founded by Karl Howe in 1985 and has since become the authority regarding debt collection cases in metro Atlanta. Karl has spent his professional career as an experienced trial attorney representing thousands of plaintiffs throughout the entire state of Georgia. Richard Howe, a native of Atlanta, Georgia, has been the lead attorney representing plaintiffs in over 7000 litigation cases.

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Karl and Richard Howe are happy to be located in Georgia, serving the greater metro Atlanta area.

An “AV” Rating by Martindale-Hubbell, the oldest and most established legal directory in the nation. This rating, which is bestowed upon only a small percentage of attorneys nationwide and only those with at least 10 years of legal experience being considered as candidates, is classified as “preeminent”, and is in fact the highest rating available.

It is uncommon, but it is part of a business’ reality when customers have no intention to pay. You may have performed all kinds of ways to reach out to them: sending letters, calling their phones, or you may have conversed with them in person. When customers’ accounts continue to be delinquent and there is a huge possibility that you cannot get your money, it is definitely time to call a debt collection lawyer in Atlanta.

With a huge number of companies in Atlanta, it is difficult to find a trustworthy debt collection law firm. However, this does not mean that it is impossible for you to find the right one for the job. The first thing that you have to do is to make sure that you do your research first. Before you commit to a lawyer, you should always check his background as well as the company he represents.

You should also understand that debt collection lawyers have their own specialties. Talk to the lawyer you think is the right person for the job and find out whether or not he already handled a case similar to yours. It is also a smart move to dive a little deeper into the qualifications of this particular professional. Do not be afraid to ask questions especially since you will be paying this lawyer. You should always get your money’s worth in the end.

The most important role of a debt collection lawyer is to help you out in case of a financial dispute. This is why you should be wise enough to find the best debt collection attorney in Atlanta so that you eventually win the case. Only a qualified attorney will be able to provide you with a sound advice as to whether or not you should pursue litigation. If this alone is something that your chosen lawyer could not provide, then he or she is wasting your time and money. There are also cases in which the attorney does not really have to go into court over a customer’s debt. Your chosen lawyer should be honest about this to you because some situations only call for credit counseling, which can actually ease the worries of both parties.

It is a misconception that attorneys are only made for court battles. As a matter of fact, a good debt collection law firm should be able to provide you with an expert attorney who is advocate of discharging the debt, if possible. Otherwise, he or she can help you create a restructured payment plan for your delinquent customer. This can be really helpful especially if the customer is going through a tough time with his own financial state.

As you search for the right lawyer to help you get back your losses because of a delinquent customer, it is important that you know the difference between a collection agency and a debt collection firm. While both may help you receive the money that was unpaid for some time as well as the interest charges if there are, an agency cannot represent your legal rights. The attorney will help you during the first stage of the debt collection where your company requests for payment from the customer. However, this is not the only thing that he or she will do for you. When things turn out to be worse than they are and the other party decides to pursue legal action, you have an attorney to help you out.

A good debt collection lawyer in Atlanta is what you need to help protect your business’ finances. Never settle for the ones that charge low fees. Always be prepared to do some research as this will be valuable in the end.