Many creditors fail to take action to collect past-due obligations. Typically, it is because the creditor does not want to invest the time or effort it takes, but it is also because it is an unpleasant task. We all know times are hard for a lot of borrowers-customers, so asking somebody to pay up makes the creditor feel like the “bad guy.” Finally, creditors often hope that if the debtor is given time, he will simply pay the debt. In fact, as more time passes, the less likely the debtor is to pay anything to the creditor.
Thus, there are 3 important considerations for creditors when it comes to collections:
- Take preventative measures to protect yourself from collection issues in the future. This begins with a comprehensive credit application. For more information on items to consider for your credit application, please read our blog titled “Is YOUR Credit Application the Best it can be?”
- Create clear payment obligations with the debtor. If the debtor does not make the payment in a timely manner, the creditor should immediately take action as set forth in the contract. This typically means the creditor should make contact with the debtor and advise that the collection process will commence if payment is not immediately forthcoming.
- If the debt is not paid within the deadline given to the debtor, the account should be placed with an attorney for collection. Delaying taking affirmative collection action will only decrease the likelihood of receiving payment from the debtor.
If you would like assistance drafting a credit appplication that will improve your chances of recovery, or if you require legal help with your collection efforts, contact Windtberg & Zdancewicz, PLC, to schedule an appointment.
The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation. We handle many types of business disputes on behalf of both creditors and debtors. Our attorneys handle cases from pre-litigation negotiations through litigation, obtaining and enforcing judgments to collect what our clients are owed. We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases. If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.