Creditors can face various challenges when trying to collect on money owed to them. It's difficult to obtain payment from people who defaulted on loans and lines of credit, and creditors have the right to move forward with legal action if necessary. Whether you are trying to collect from a business or an individual, it is in your interests to learn about your rights and the steps you can take to secure payment.
There are some remedies available to you that may not cost you anything. However, there are times when it is necessary to seek legal guidance and move forward with formal steps that can help you get back what someone owes you. It can be beneficial to do a cost-benefit analysis of all of your options before you move forward with a specific course of action.
D-I-Y collection strategies
In some circumstances, collecting money owed to your company is simpler. There are several out-of-court options available to you, including simply contacting the debtor and demanding prompt and complete payment. He or she may respond, and if you cannot get payment in full, you may be able to negotiate a reasonable settlement.
If these strategies are not effective, it may be appropriate to hand over the account to a debt collection company. However, there are strict rules regarding how these companies can interact with debtors, and it's smart to know what to expect before moving forward with this option.
Other collection options
You may be able to avoid handing over the account to a debt collection company and still successfully securing the full amount owed to you. One option is through a secured transaction, in which a debtor gives you a claim to specific property as payment.
Before you seek a court-based remedy, you may want to explore the possibility of getting the money owed to you through replevin and attachment. Similar to the garnishment process, this allows a creditor to take property, or the title to property, as payment or until payment in full. Other options may include a lien, a lawsuit or going to court.
Protecting your business interests
As a creditor, you have the right to pursue the money owed to you. This can be a frustrating process, but there are specific steps you can take to protect the interests of your business. You will find it beneficial to work with a Florida attorney experienced in creditors' rights and the collections process.