When running a business, there will always be the looming worry of doing great work for a client who never pays. Although frustrating, this scenario does not leave a business owner without any recourse- he can always take legal action to try to recover the outstanding money. In such a case, it is important to hire a debt collection attorney. Such lawyers can work with the business owner to develop legal strategies for recovering debts from non-paying clients or customers. This article tells the factors to consider when hiring a lawyer to recover debts.
How much fee is charged by the debt collection lawyer?
The cost of filing a court case to recover the debts from non-paying customers can oftentimes reach hundreds of dollars. If a business owner is successful, he is likely to have to pay one-third of their recovered debt and also additional fees to the debt collection attorney. Therefore, when searching for a lawyer to recover debts, make sure to ask each candidate about their fee structure and also see if the business can afford the costs of going to court.
Are the skills of a lawyer appropriate for the case?
Some debt-recovering lawyers are skilled enough to win cases against small companies but don’t know how to handle large business debts. So, it’s better to ask the attorney candidates about their track records to know where they excel and lack experience. Always choose the lawyer suiting the business’s needs.
Do they specialize in the business’s debt type?
The skills of a lawyer are not the only indicator of how well they fit the business needs. For instance, a lawyer well versed in collecting debts from small companies might fail to recover debts tied to large company equipment rentals. So, discuss the business debt type with the potential lawyer to determine if their services will work or not.
What do their references say about the lawyers?
A trustworthy debt recovering lawyer should have a list of references- ideally experienced clients- readily available. Also, such lawyers should not have issues with current potential clients connecting with those references. A business owner can use these references to gauge whether the lawyer is right for his company.
How do they handle communication?
Attorneys might be pretty busy but see that their hectic schedule shouldn’t hamper their communication with a business owner. It is always advisable to ask how often the potential attorney will update the individual throughout the process and determine whether their answer works for him.
A debt collection attorney is an expert in helping businesses develop legal strategies to recover their debts from their clients or customers. From completing and filing paperwork to representing a business owner in court, such lawyers are skilled enough to help their clients collect their outstanding debts. These factors will help a business owner choose the right debt-recovering lawyer.