Why You May Need A Business Debt Collection AttorneyThe law governing business debt collection is very specific in stating what is and what is not permissible. It is for this reason that many businesses choose to appoint a third party collections agency or a business debt collection attorney to chase their debts. Business Debt Collections Law
Every business is governed by business debt collection law; every business will have debtors who are persistent in their non-payment. The skill is to collect what is due whilst staying within the actions allowed by the law. This article is in no way intended to offer legal advice - business debt collection attorneys do that. It is offered as an insight into the legal minefield of debt collection in the USA. The first step is to notify the debtor that a collections process has been commenced against them. This notification must be in the form of a written communication and it must be sent within 5 days of the commencement of collection proceedings. As a creditor you are not allowed to take collection action if the debt is disputed; you are not permitted to make any form of misrepresentations regarding anything connected to the collections process nor are you allowed to make threats. Creditors run the risk of falling foul of business debt collection law if they make any disclosure to a third party or give any false information regarding the debt. This includes sending letters through the mail that would indicate that the subject of the letter is debt collection.In short, business debt collections law is a minefield for the unwary and untrained. Business Debt Collection Attorneys Many businesses choose to appoint a business debt collection attorney in order to stay out of trouble. Such attorneys are well versed in the law surrounding business debt collections and will operate in a manner that will protect the creditor from possible legal action. All business debt collection attorneys are governed by the terms of the Fair Debt Collection Practices Act, in the same way as third party collections agencies, simply because they are classed as debt collectors. A business debt collection attorney will also act on a creditor's behalf in cases of business disputes and of course ultimately if litigation is required to collect the outstanding debt. Bearing in mind the amount of legal and regulatory requirements that cover the collection of business debt it makes sense to consider the appointment of a business debt collection attorney to assist with the process. Bankruptcy Attorneys Bankruptcy attorneys work for the debtors. They will represent debtors who are facing action from creditors, fighting to protect their rights and property. Bankruptcy attorneys are specialists in dealing with debt from the other side of the fence. They use the provisions of bankruptcy law to help both individuals and businesses manage their debt problems. Debt management plans may include the disposal of assets to generate cash to settle debt or it may be the negotiation of a settlement to take place over an extended period of time. Bankruptcy attorneys will advise on the best course of action to give the debtor the best protection. For this reason it is essential that they are given the full facts of all debt related matters - they cannot give solid information if they only have half the story on which to base their assessment. |