Do I need a Lawyer for Debt Collection?

If you are a Georgia business owner, you probably dread collecting overdue debts. Maybe you have tried sending friendly reminder letters, and even selling the debt to a collection agency at a steep discount. However, there is an alternative.

Collection lawyers are necessary for both individuals and businesses who have difficulty collecting on debts they are owed. A collections attorney can pursue a judgment in your favor, and they may take further collection actions to ensure that the debtor adheres to the judgment conditions and makes the payment.

Should I consider a Collection Agency?

What exactly is a collection agency, and how do they operate? Collection agencies provide two services to their customers.

1. They can send demand letters or call the debtors and inform them of a problem.
2. If the debt has not been paid, they can put the account on the credit report for the debtor.

Unless the agency handling collections has an attorney who handles debt collection on staff, they cannot legally file a lawsuit on your behalf.

Collection agencies specialize in sending demand letters to creditors, which are often ignored and can delay your ability to collect on the debt. Certain collection agencies provide legal assistance to their clients, but typically they charge a suit and/or an “activator” fee for legal actions when required. They may also have a contractual period or minimum requirement for placements, which could hinder your ability to recover a debt swiftly.

If the account is placed in collections for an extended period, the debt could expire if the debtor does not respond to the collection agency’s demands and letters. After this time, you will not have any viable method of resolving the debt. In this case, you may sell the debt at a price of pennies on the dollar to collection agencies specializing in collecting zombie debt or debt that is past the statute of limitations.

Why do you need to retain an Attorney for Debt Collections?

Hiring a law firm that specializes in debt collection offers several advantages. At Diwan Law, we know all relevant laws to ensure those laws are not broken when collecting a debt.

If you begin by hiring the services of a Georgia collection attorney, we can help you save time, money, and stress by:

• Examining the debtor as well as the debt. Before initiating any collection action, we assess the legality of your claim. This includes applicable statute limitations or other weak documentary evidence concerns that could affect your claim.
• Filing lawsuits: lawsuits will be promptly filed
• Negotiating on your behalf an affordable and feasible repayment plan. The repayment plans are suggested when they are feasible to avoid canceling or reducing your claim in the debtor’s bankruptcy proceeding.
• Taking aggressive action to collect your debt: If needed, the judgment can be secured and enforced through filing a judgment lien and/or post-judgment garnishment actions.

Debt Collection Agencies Lack Leverage

When you transfer your debts to a collection agency, the agency cannot provide substantial leverage that can be highly beneficial in settling the debt. Collection agencies can’t take legal action without an attorney handling this procedure, and they cannot even engage in legal proceedings without having the resources to pursue it.

Contact an Atlanta Collection Attorney

If you are a creditor trying to collect an outstanding debt, speak to an experienced Georgia collection attorney at Diwan Law.

Our main goal is to get you paid. We are a commercial collections law firm that works relentlessly to collect your owed funds. Diwan Law is the law firm that other lawyers call to collect their fees or assist their clients in getting paid.