Sure Signs its time to call a debt collection attorney

when to hire a debt collection attorneyOpen confession and professional courtesy time. We came across an excellent article on the web, and are publishing it here in abbreviated form. Our thanks to Michael C. Dennis, MBA, CBF from the Covering Business Credit Website for this fantastic article. An article so good, that it should be shared with our clients, and prospective clients. We did not, however, want to let the article go out unattributed.

While there are no iron clad rules around when one should turn to a debt collection professional, there are some pretty clear indicators that its time. These rules are written assuming that this is a business to business commercial debt. However, the guidelines are fairly good for when to turn to a debt collection attorney in a consumer debt issue as well.

 

  • Bounced checks, both to you, or to other companies.
  • Refusal to make good on a bounced check
  • The debtor is no longer bringing down their balance with you
  • The debtor neither takes, nor returns your calls.
  • The debtor is 90 + days overdue.
  • Tax Liens have been filed against the debtor
  • Unexpected turnover over high level employees at the debtor.
  • At least two broken promises to pay.
  • A promise to pay, where the actual payment is significantly less than the promise.
  • The company that owes you month won’t acknowledge the debt.
  • The company that owes you money offers a payment plan, but won’t sign an agreement or Promissory Note
  • ANY whispers of bankruptcy.
  • Sudden unexpected changing of banking accounts by the debtor.
  • The debtor defaults on any of it bank loan covenants,
  • “Once I finish setting up the new bank accounts and financing.. THEN.. I can make arrangements”
  • Frozen Bank accounts are a dead giveaway, its time to call in the professionals and stake your claim.
  • Getting a check on a closed account, sometimes its a legitimate accident, but combine that with other indicators, and its time to involve a debt collection attorney.
  • If the debtor sells their company, and a few of the other factors in this article are also in playu.
  • If you become aware of a large sale of the debtors assets.
  • If you are given an unreasonable payment plan proposal in lieu of bankruptcy.
  • If your customer asks to talk to your “work-out” person.
  • If the customer appears totally unconcerned when you advise them they will be going to collections.
  • Disconnected phones, and returned mail as undeliverable, indicate it is well past time to call a debt collection attorney.
  • New ownership changes, and the new owner claims to not be responsible for the old owners debts… time for a professional.
  • If you can’t reach someone of adequate authority at the company, or if that person won’t make a commitment to satisfy the debt.
  • If the debtor is being sued by others creditors, you need to get a professional collections attorney, or risk losing your place in line.
  • The debtor’s business is for sale, or you are told it is about to go up for sale, especially if overtures are made that you will be paid only out of the proceeds of the sale.
  • If your customers other creditors have put the customer on COD terms instead of their normal credit, its a good bet there’s trouble that will require a professional.
  • If the other creditors have noticed the same pattern of nonpayment as you have.
  • A lack of any response to a final demand for payment, a good sign that its time to turn the account over.

The more factors that come into play ,the more likely you will need to involve a debt collector, or a debt collection attorney. If you aren’t sure, call Gil Singer at our offices, he will help guide you.

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