06 Jun I’m owed money – how do I collect a debt?
It is not uncommon for people or businesses to find themselves in a position where money is owed, but the other party simply will not pay. If you or your company has tried to collect a debt on your own but the other side refuses to pay, it may be time to hire a lawyer. A good collections attorney can take the following actions to help recover your money:
- Send a Demand Letter. Debtors who refuse to pay a debt will often quickly change their tune as soon as a demand letter arrives in the mail from a recognized law firm. Most attorneys can draft demand letters for a relatively small charge, and the pay off to the client can be substantial.
- Bring a Lawsuit. Complaints for “Money Owed” are one of the most common types of lawsuits filed in our court system. The stubborn debtor who ignores a demand letter cannot neglect a lawsuit without having a judgment entered against him. Many debt obligations can be resolved in litigation without the need for a trial. Even when a debtor has little money currently available, settlements can be reached that require specific payments be made over time until the debt is satisfied.
- Locate Assets. Experienced collections attorneys know how to locate assets that can be used to satisfy a debt. Even the most resistant debtors will suddenly find ways to repay their debts once they receive notice that the local sheriff will be coming to their home or business to execute the judgment. Executing a judgment can involve auctioning off homes, cars, and even personal property!
Although the above actions can be taken by a law firm on your behalf, it is important not to wait too late to contact a lawyer. The statute of limitations governs how long you have to collect a debt, and once that time passes, there is nothing an attorney can do to help.
If you need help collecting a debt, contact the litigation counsel of Dozier Miller Law today: