Law Firm vs. Collection Agency

A Law Firm that Specializes in Debt Collection has Many Advantages over a Collection Agency for Quickly and Cost Effectively Recovering Your Outstanding Debt

It can be difficult and frustrating trying to receive payment for product or services you have provided, when people that owe money are not responding, or willing to pay. There are several options available to individuals to try to collect money owing to them by people who are not willing to pay. The most common method once you have exhausted your abilities to collect is to hire a debt collection agency to help you collect. Another option, which is typically more effective, timely, and often quicker and more cost effective is to hire a lawyer that specializes in debt collection.

The typical process that takes place when somebody is owed money is that the individual reaches out to the person who owes them money and requests payment. This is typically done by one or several phone calls, emails or mailed statements. When an individual or company refuses to acknowledge or respond to these requests, often more help is required. If an individual decides to take on the services of a collection agency, they will find that for a set fee, or a significant percentage of the debt, the collection agency will call, and send out a letter demanding payment of the debt. If the debtor does not respond the collection agency will continue phoning and sending out letters demanding payment. However, these idle threats are basically the limit of what a collection agency can do to enforce payment. Many people know that there is really very limited force that a collection agency has to obtain payment. For this reason, many people simply ignore these requests, and do not respond to a collection agency. At this point, a collection agency will need to obtain the services of a collection lawyer (at an additional fee) if any further action, or a lawsuit is required to collect on the debt, which will increase collection costs further, putting less money into your pocket.

Hiring a lawyer directly that specializes in debt collection can increase the likelihood of collecting, while speeding up the process of collection by passing over the middle man. A lawyer will typically issue a demand letter requesting prompt payment and if that fails has the ability to file a lawsuit immediately to collect the outstanding money. When an individual receives a letter from a law firm demanding payment of an outstanding debt people take it more seriously than from a collection agency as they know a lawyer can initiate legal proceeding to force payment and collect the debt. After a lawsuit is filed, your lawyer can quickly and efficiently complete the steps required to win a lawsuit as they are proficient in the legal process of handling a civil lawsuit. Once there is adjudgment issued in your favor, a lawyer has the legal ability to collect payment of funds that are owed to you. There are various options available such as garnishment of wages from the debtor’s employer, garnishment of debtor’s bank account, seizing of personal assets, etc.

A lawyer who specialized in debt collection also has access to organizations and other professionals that are able to track down and locate a debtor and their assets. This allows for a higher likelihood of actually obtaining payment of money that is owing to you.

Ultimately, you work hard for your money and deserve to be paid for the work and products you provide. If you are owed money by an individual or company which you are having a hard time collecting on, it makes sense to hire a law firm that deals with debt collection on a daily basis. This will speed up the time you have to wait to be paid, increase the likelihood of receiving payment, and increase the amount of money that you put into your pocket.