No matter whether yours is a small company or a giant firm in New York, dealing with debtors is never easy. You can always chase your debtors and hope they will pay up, but in many situations, that may never happen. Your best bet is to get assistance from an expert. While debt collection agencies are around, working with a collection lawyer in New York offers many advantages.
Understanding the role of debt collectors
Firstly, a debt collector is not an attorney, although they can do a few things. The agency can call the debtor and send them notices on your behalf, and if they fail to pay, they can notify credit reporting bureaus. The professionals who work for these agencies can do their best to ensure that someone pays, but they cannot take legal action. That’s when an attorney becomes more relevant.
Relevance of debt collection lawyers
When pursuing consumer debt, businesses are required to adhere to the rules and norms of the Fair Debt Collections Practices Act. However, this doesn’t mean your company has to forgo seeking the owed money. A collection attorney can do much more than debt collection agencies. Lawyers usually start by reviewing business contracts to ensure that everything is fair and correct. If you are signing new contracts, they can be your resource for getting an honest assessment and taking preventive measures so that you can avoid similar situations in the future. When you hire a collections attorney, you can save significant time and money, as many firms also have a collections department that can do almost all the things that an agency would do. In addition to that, they will take care of the legal process.
Other things to know
A collections attorney is also responsible for collecting money when a civil judgment is available and specializes in handling matters related to wage and bank garnishments. They also place liens on real property. Some of the other essential things that your attorney can do include sending a demand letter threatening legal action, initiating a lawsuit, and obtaining and enforcing money judgments.
Businesses that have a significant number of debtors need to have a collection lawyer. There are dedicated firms in New York that specialize in business law and debt-related disputes, and in many cases, lawyers may charge a contingency fee or offer affordable services. Look for a local lawyer so that you can use their expertise on demand.