3 Tips for Hiring a Legal Team to Recover Debt
A Guide to Obtaining a Lawyer for Debt Recovery
When your business is owed debts from clients, customers or other businesses, you may feel as though you’re in a holding pattern. Bad debts can cause cash flow issues and, in some cases, may even make it impossible to keep your business running. If your attempts to collect on debts have proved futile, it may be time to work with a professional.
Because there are many laws and regulations pertaining to debt collection, working with an experienced legal team to collect debts is often a solid choice. But, not all debt collection attorneys are the same. Follow the three tips below to ensure you choose the legal team that’s right for your business.
Do Your Research
This might seem obvious, but, far too often, business owners run a search and select the first name that comes up. This doesn’t mean this individual, agency or firm is the best choice; it just means they’ve done a good job in marketing their business. Your research should go deeper.
Find out what the firm you’re interested in specializes in – large companies? Home-businesses? Individuals? Ask about their success, fees and methods. Meet with your chosen firm to ensure you feel comfortable. If you have questions, ask.
Verify Methods and Legitimacy
Before working with a law firm to collect debts, take the time to learn about the Fair Debt Collection Practices Act and to make sure that your chosen firm works within these regulations. Your firm or agency should be bonded and licensed.
Take the time to ask questions relating to success rates and about your specific case. Ask whether or not the firm feels as though debt collection is the step that’s right for your situation before moving forward.
Be Sure the Firm has Insurance
Regardless of how legally sound debt collection methods may be, debtors may fight back. Take the time to ensure that you will not be held liable should this happen. Ask for proof of insurance from the agency or law firm that you decide to work with in case this unlikely situation would arise. In most cases, this type of insurance is called “Errors and Omissions Insurance.” It offers an extra layer of protection for your business throughout the collections process.
Collecting on debts on can be a stressful process that is filled with stress. Don’t allow it to interfere with your business. Instead, contact an experienced debt collection attorney, like Michael Hynum of Hynum Law today. We look forward to working with you.