Business owners often let their accounts receivable go stale because they don’t know how to collect them. Turning accounts over to a debt collection agency may be inefficient if the agency only sends out demand letters or makes phone calls.
The only way to “get traction” is to file a claim in court because only a court order will permit a wage garnishment, bank attachment or judgment lien on real estate. Judgments can be obtained up to $3,000 by individuals using the Small Claims Division of the municipal court. But corporations, partnerships and limited liability companies can represent themselves only on a limited basis.
Lawyers are often willing to accept collections as a “contingent fee” basis whereby the creditor pays no legal fee if the collections effort is unsuccessful. Of course, court costs (usually minimal) are paid by the creditor. “The squeaky wheel gets the grease” is usually sound advice when deciding whether to write off an account.
If your business needs help with debt collection we can be reached at 937.339.3939 and appointments are usually available within 24 hours of your call.