How To Recover a Debt

When you do business with someone and they refuse to pay for the services you rendered, you may feel like you don’t have many options. This is simply not true. First of all, you always have the option to take legal action. Second, there are some strategies you can use before you file a lawsuit.

We hope you enjoy our tips on recovering debt, but if the person or business who owes you money refuses to cooperate, know that you can always call Busch, Reed, Jones & Leeper, P.C.

The law is on your side, and so are we.

Send a Reminder Before Payment Is Due

When it comes to recovering debt, timing is everything. Avoid late payments by sending a friendly reminder a few days before the payment is due. Always adhere to the terms of your contract and include a deadline with every invoice you send out.

Offer a Payment Plan

If you’re trying to recover a large sum and it seems appropriate, you can always offer a payment plan to make payments more manageable. You can offer a payment plan before the debt is due or as soon as you realize it may be late. Make sure to specify when installments are due and get the terms of your debt management plan in writing.

Send Late Payment Letters and Past-Due Notices

Once your client or customer is a few days late on their bill, feel free to send a professionally worded late payment letter. Remind your customer that you will have to suspend your services and start charging interest if you do not receive payment. If you still do not receive your payment within a reasonable amount of time, you can send a 2nd late payment letter.

Once the late payment enters the 30-day mark, you can start sending past-due notices. These typically go out at 30 days, 60 days, and 90 days past the deadline. The last letter you send should be a “letter before action,” so your client knows you are prepared to go to court to collect the debt.

Keep a copy of everything you send, as you may need this documentation in court.

Charge Interest

You should have terms for interest spelled out in your contract, but all business creditors can charge interest for late payments. If you’ve given your client or customer every chance to pay, and you still haven’t received payment after 30 days, you can begin charging interest.

Every day, the amount you are owed will increase by a small percentage. This makes it more worth the trouble if you must go to court to recover a payment. In some situations, a debtor who drags you to court may be responsible for your legal fees, as well.

Call An Attorney

At Busch, Reed, Jones & Leeper, P.C., our debt and judgment collection lawyers can help you get the money you are legally entitled to. We work hard to help you get and enforce judgments. In some cases, this means collecting directly from a debtor’s paycheck.

With over 150 years of combined experience, we can walk you through your legal rights and options and help you choose the solution that works best for you.

Call us at (770) 629-0154 today or contact us online for a free consultation.

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