Business Debt Collection in Massachusetts
Collection of business debts involves following up with businesses to pay back the money they owe to given companies. Debt collectors are expected to uphold particular values as they execute their roles. At our Massachusetts Law Firm, we promote amicable debt collections. Apart from that, the Massachusetts debt recovery attorneys are guided to keep good relations between the different parties involved in the debt recovery process.
Upholding good relations aligns with our philosophy of only taking legal action as a last resort. Our years of experience in the industry have taught us that confrontation only makes matters worse. Instead, we would work with you to reach an agreement beneficial to both parties. By embracing the arrangements, we can preserve your business relationships and help you get the money you are owed without any unnecessary drama.
The attorneys properly analyze the debtor’s financial situation before an agreement is reached to help ensure that the debtor can make the required payments. The research is done to avoid putting the debtor in a worse position and upholding our value of being professional in our debt recovery services. There are occasions when legal proceedings are necessary, but we will only take that step after exhausted all other options.
Here is an outline of the steps before debts are fully collected.
Debts Non-payment Notification
The firm will need you to contact our offices and report unsettled debts with the following information:
• Name and last known address of the debtor
• Amount owed and any other details about the money
• Proof that you have lent money to the debtor, such as a sales invoice or loan agreement
Our offices will then notify the debtor demanding payment of the outstanding amount embracing structured communication strategies to ensure the debtor is informed of their standing charges and is not confused about the amount due. Our debt attorneys will send official communication with the emails or calls to the debtor’s registered address.
Evaluation of the Recovery Progress
As a firm, we handle the comparative evaluation of the debtor’s financial ability and the requirements we issue regarding collecting debts. Our team will make a report of the debtor’s situation and any changes that may have occurred since the last report. We will also recommend actions that need to be taken to collect the money successfully. It is expected that the debtor will stick to the payment plan set and will make the required payments on time. If this is not the case, we will take appropriate actions to bring the debtor into compliance.
Continued Monitoring of the Debtor
Massachusetts Debt Collection Attorneys monitor the repayment process to ensure that the debtor meets all of the creditor’s requirements. The debtor is given constant reminders throughout repayment to ensure that they are aware of their obligations. If there are any changes in the debtor’s circumstances, we will update our team and take appropriate actions.
If the debtor does not respond to our initial notification, we will make further attempts to collect payment from the debtor. If we are unable to contact the debtor or if they deny owing money, we may collect additional information from you regarding the debt. If, after all our debit gathering efforts and the debtor is still unable to collect payment in full from the debtor, we will advise you on whether it is commercially viable for us to pursue legal proceedings against them. Some of these efforts include issuing a final demand for payment and sending a notice of intention to issue legal proceedings.
If you give us authority to commence legal proceedings, our solicitors will issue a claim at court and serve it on the debtor. The claim will provide details of the amount owed and when the debtor should pay it. If the debtor does not respond to the claim within 14 days, they will be liable for any interest and costs incurred due to their non-payment. The firm can also issue the claim without your authority; however, you will be liable for any interest and costs incurred from pursuing legal proceedings.
The amount received from the debtor is reimbursed to you as soon as the court case has been resolved. The resolution may take several weeks, depending on the court system. The reimbursement may either be done as a whole or partially, depending on the amount paid by the debtor.
Debt Recovery Process Cost
The cost of recovering debts at Massachusetts Debts Recovery Law Firm equates to the contingency fees plus a percentage of the arrear. This percentage is typically around 3% of the amount received or any other expenses incurred in the debt recovery process. The debtor pays the cost even if they are successful in court. The use of contingency fees offers the clients the advantage of not making payments to the arrear collector while the case is in progress. Such a provision gives the debtor a chance to negotiate a settlement with the creditor without worrying about paying legal fees. In addition to that, all payments will be done once a given amount of arrear has been settled.
Arrear Recovery Period
It takes time to recover debts in Massachusetts. The typical period ranges from a few weeks to a few months. The time frame has its basis on the complexity of the case, the amount of money owed, and the availability of resources on the part of the debt collector. However, as soon as you identify an arrear, contact us immediately for a free consultation. We will then take up the matter as soon as possible and work on recovering your money.