You’ve exhausted every effort in debt collection, maintaining a polite and professional demeanor while sending letters, making phone calls, making attempts at payment restructuring, or possibly discounting the debt in order to recoup some of the money owed. When the frustration starts mounting as much as the debt that is owed, it’s time to call a professional. But who — a commercial debt collection attorney or collection agency? While at first thought a collection agency may seem like the easier route, that is not the best choice for any amount over $5,000.00. Here are a few reasons why…
- Cost: Most collection agencies work on a percentage basis where they only earn fees on the debt collected. While the pay-for-performance model seems more appealing, what is revealing is that collection agencies are limited as to what they can do and often put in only enough effort to collect only the low hanging fruit. By using an experienced commercial debt collection attorney at the Law Offices of Alan M. Cohen LLC, you gain flexibility with payment structures such as contingent, hourly, and hybrid fee agreements. Most importantly, we treat every case the same and pursue the entire payment tree and not just the easy pickings.
- Effective Legal Action: In order to collect a bad debt, there are times when legal action is the only option. The Law Offices of Alan M. Cohen seeks pre-judgement security so that once you have won, there is something to collect. When the case is won in court, the court will enter a judgement against the debtor. The judgement states the amount of money owed and in Massachusetts is good for twenty years. After a judgement is issued, we request and usually receive from the Court an Order directing the bank to release to us all of the money seized by the pre-judgement bank attachments, up to the amount of the judgement. If the amount seized prejudgement is less than the amount of the judgement, we commence searching for assets post judgement. We do not stop until we have turned over every rock looking for monies from which to get you paid.
- Pro-Active: Let’s face it, having collection agencies send letters, which you have already done, is almost always an ineffective way to collect and a waste of time. It gives the debtor incentive and time to hide assets. The Law Offices of Alan M. Cohen LLC experienced commercial debt collection attorney doesn’t write letters (unless the client requests same). Instead, we pro-actively start preparing a file for prompt litigation the second we receive your case, using various public record sources to attempt to verify the debtor’s location and assets before we file suit.
When dealing with commercial debt disputes, it is critically important to choose the right course of action and hire an attorney that is knowledgeable and experienced in all facets of debt collection. For information on our legal services, please contact us today!