How to Know It is Time to Hire a Collection Lawyer in New York
Last Updated on May 5, 2023 by hassan abbas
Unless all of your clients are paying what they owe you in full, you may be dealing with a lot of outstanding debts. In this case, you may want to start forming your collection team or hire a collection lawyer. Hiring a collection lawyer in New York can help you recover the debt quickly. As they handle overdue debts, you can concentrate on running and growing your business. If you are still not sure about hiring an attorney, the following are some signs you need a lawyer:
You are Dealing with a Lot of Outstanding Debts
When outstanding debts pile up, you may have difficulty putting funds back into the business. This can result in the stagnation of your company’s growth, allowing your competitors to rule the market. At worst, your organization could go bankrupt because of a lack of financial resources for payroll, overhead, and inventory.
Thus, you must recover all of the outstanding debts before a lack of funds can affect your operations. This is possible by having a legally-sound collection process that has a lawyer’s involvement.
You Have Spent a Significant Amount of Time Collecting Debts
Collecting debts owed by individuals and businesses take time and manpower, particularly when you need to track down your debtors. You may need to take your workers off their daily tasks to focus on debt collections or build an entire collections department. If these are too much of a compromise for you, then you should consider hiring a collection attorney.
You Want Collect Debts Without Damaging Established Relationships
Trying to collect on a client’s debt or hiring a collection agency to collect for you can damage the relationship you may have built with your client. The client can get offended by the aggressive collection efforts and may take their business elsewhere.
Letting an attorney handle past-due accounts allows you to establish a reasonable buffer. The client may understand that the collection process is only a part of operating your business. Thus, they may pay their obligations to you and continue to use your services or products.
You Want to Sue Clients for Unpaid Debts
If you must sue some clients to collect unpaid accounts, you need to hire a lawyer anyway. So, it is best to let them deal with the account from the get-go. The lawyer can request payment with the use of their field reputation and this can happen even if you do not go to court.