Understanding Commercial Debt Collection
Extending credit to businesses is essential to promoting healthy commerce. Most businesses cannot afford to make large purchases, such as equipment or real estate, without the help of financing or payment plans.
When all goes well, the debtor repays the commercial debt as agreed and the creditor earns interest. But when debtors default on their repayment obligations, commercial lenders find themselves in a very tough position. They must choose between investing huge amounts of time and money trying to collect that debt, and writing it off as a loss or bad debt.
Understanding your rights under collection law
Whether you are a financial institution or a company that extends credit to its customers, you must understand your rights as creditors and how to protect your interests in the event that scheduled payments slow or stop.
After attempting to collect this debt on your own by sending out overdue notices and making collection calls, it may be worthwhile to enlist the help of an experienced attorney. Professional debt collectors can take aggressive measures like the following:
- Conduct negotiations and set up payment plans
- Enter into binding alternative dispute resolution with the debtor
- Foreclose on business assets
- Repossess secured property, such as a vehicle
- Obtain a court-ordered judgment against the debtor
- Place a lien on secured real estate
- Initiate a lawsuit
Most judicial and non-judicial debt collection procedures involve taking a series of actions by specified deadlines. For this reason, it is important to move quickly to stake your claim on assets and money you are owed.
If you work at a business or financial institution in need of debt collections in Texas, Arkansas or Tennessee, Hosto, Buchan, Prater & Lawrence, PLLC can help. From our offices in Dallas, Texas and Little Rock, Arkansas, our Texas commercial collection attorneys and Arkansas debt collection lawyers have an impressive track record of effective debt collection. We are located at 701 West Seventh St, Little Rock, AR & 13612 Midway Road, Suite 408, Dallas, TX and 4525 Harding Road, Suite 218, Nashville, TN.
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