Do Lawyers Do Debt Collection Before Court Involvement?
Retaining a qualified commercial debt collection lawyer should be done upon establishing your business. Don’t wait until a problem arises to secure an attorney. Most litigation can be avoided when the right attorney is already on board. In other words, many times at The Weisblatt Law Firm, the professional staffers see the problem coming way before litigation is necessary. In Business-to-Business (B2B)relationships, it is critical to have sound legal counsel at all times. Lawyers should be involved with your business concerns before court involvement is necessary.
Unprecedented times like the ones we are experiencing now can make doing business more difficult. At the same time, it is of paramount importance that your business moves forward and thrives. In order to do that, your bottom line has to be as vigorous as possible. Having the right professionals surrounding you and your company makes all the difference.
Does My Business Require a Debt Collections Attorney?
The short answer is “Yes, your business will benefit from hiring a debt collection attorney.” According to Business News Daily, you should hire a collections agency when the debt owed to you is 120 days late. A qualified commercial debt collection lawyer will inform you that collection procedures begin much earlier. This is the proactive solution to B2B debt management. Gentle reminders and in-place protocols should continually be a part of your business practices. Just having a law firm’s name affixed to your collection protocols puts the idea of legality in your customers’ minds. Subliminally, they understand that this is a business relationship that needs to be respected and honored, despite how familiar they may be with you and your staff. Some other circumstances that may delay paying commercial bills include:
- Extended Time Frame of Business Relationship – After doing business with the same client for many years, they may feel that paying for the goods and/or services you provide can be postponed for a time.
- Business Customer or Client is Experiencing a Financial Problem – The cash flow of your client may be short due to underproduction, or they’re experiencing a high turnover rate of staffers. As a business professional, you fully understand the myriad of reasons that compromise ready funds.
- Client’s Expenses Have Gone Up Exponentially Due to Unforeseen Circumstances – The cost of doing business may have suddenly changed due to market fluctuations or local or world events, such as the pandemic.
There Is Much to Be Done to Collect Debt Before You Resort to Litigation
If you own a business where being owed money is part and parcel of the space, then you definitely need a qualified commercial debt collection lawyer. However, don’t be of the mindset that a debt collection attorney can only help when your debt has reached a certain level. This is a widely-held misconception. In fact, the same resource Business News Daily reports that a debt collection attorney should be engaged when:
- You need to recover large debts
- Your debtor is a huge company
- “Other legal assistance” is required
Point number 3 is where a qualified commercial debt collection lawyer like The Weisblatt Law Firm puts its stress. Recovering debt is not all that the legal professionals employed at this law firm specialize in. The firm also specializes in the following legal situations and circumstances:
- Business contracts
- Real estate transactions
- Legal disputes
- Corporate formation
- Business representation
- Transaction employment issues
The Weisblatt Law Firm has built a reputation for helping small businesses and large corporations alike have well-facilitated relationships within their business sphere. In this way, you are able to focus on conducting your business while the professionals handle your legal concerns.
When All Else Fails…The Litigation Process in B2B Debt Collection
A qualified commercial debt collection lawyer is also adept at negotiating and strategizing your debt collection procedures. However, if necessary, the litigation process must be employed. It is imperative that you have an attorney who is skilled in this area.
Each state has its own laws, rules, and regulations as follows:
- Civil procedure
- Rules of evidence
- Local court rules
- Business organizations code
- Contract laws
- Employment laws
According to the qualified commercial debt collection lawyer at The Weisblatt Law Firm, the above “weave” throughout every step of the litigation process.
The litigation process is a very complex one and it varies greatly because it is contingent upon the debtors’ responses. However, in a generic scenario, the litigation process involves:
- Filing petitions
- Filing answers
- Filing of the initial motion
Depending upon the debtor and the court’s responses, the discovery phase then occurs. This particular level of the proceeding is both complicated and extremely important. Your attorney will be able to obtain information and evidence that the debtor has and may be planning to use for defense. Again, a skilled and qualified commercial debt collection lawyer can intensify their strategy and negotiating efforts to possibly obtain a settlement at this phase.
Be aware of the fact that settlement negotiations will go on throughout the litigation process and may continue until a trial verdict is reached. However, most business litigation cases reach a settlement before the trial begins. In most cases, it is advantageous to reach a settlement before trial in order to save the further expenditure of your company’s resources.
Having The Right Law Firm Represent You in B2B Debt Collection Matters
As with every aspect of your business, it is critical to have the right professionals in place to ensure the efficacy of the process. Just like the vendors you have relationships with, your legal representation should work in accordance with your business’s efficiency, productivity, and overall success. Your qualified commercial debt collection lawyer will have an understanding of what your business needs are. They will have information about what is necessary to be successful in the business sphere you occupy. This knowledge informs how they can help your business achieve the goals you have set.
Part of that is the acquisition and retention of funds. The bottom line is that you need funds to keep your business going. The Weisblatt Law Firm will prove to be a staunch, professional ally in how you maintain your business. Part of that maintenance includes efficient debt collection. When considering who should be in your corner to help with this very necessary function, the experience should be an important component in the decision. Strategy and negotiation take the experience as well. Andrew Weisblatt has that experience with over 20 years of practice in this field.
The less debt that your company incurs, the better. Having representation to support this truth is key. Not having to go through the litigation process is the goal. Having an attorney who is well-versed in all areas of business law and practice is your best chance of avoiding court.
