As a Florida business owner, you cannot make a profit unless the people who patronize your company pay you. When you don’t get the money rightfully owed to your company, it’s frustrating because you’ve already invested your time or given product to the customer. There are times when it may be necessary to explore the legal options available if you need to collect payment.
Creditors have certain rights, including the right to pursue payment. While there are limits to what you can do, the law provides a way for you to seek recourse for unpaid balances. It is in your interests to know how you can move forward, get what others owe you and minimize your financial losses. Creditors’ rights can be a complex issue, and you may find it beneficial to seek guidance regarding your options.
You may be hesitant to initiate a legal proceeding over an unpaid debt. There are out-of-court options available to you that may be effective in your effort to collect what’s owed to you. One remedy is to simply reach out to the party that owes you money and request payment. If this is not effective, you may be able to turn the account over to a debt collection agency. You can do both of these without involving the court.
Claim to debtor’s property
If a self-help remedy is not effective in your situation, you may want to consider a secured transaction. This is a process in which the debtor gives you a claim to his or her property through a specific type of loan or sale transaction. As a secured creditor, you can then take back property if the debtor does not pay. This is more common in home or car purchases.
Going to court
Sometimes, it is necessary to go to court to get the money owed to you. The court may determine various types of remedies are appropriate, including handing over property to the creditor or compelling the debtor to pay. Of course, going to court can be complex, but this is an option if other methods are not possible or have not been successful.
The interests of your company
If you are waiting on payment of an unpaid balance, it’s in the interests of your company to know how to proceed. You have the right to avoid financial loss and compel payment from those who own your business money. You may find it beneficial to discuss your options with an experienced creditors’ rights attorney.