Protecting the financial interests of your company is undoubtedly a priority for you as an entrepreneur. Unfortunately, bad debtors can disrupt your goals. Recovering money from clients who refuse to pay can be a real challenge, and while you can hire a collection agency, their workers cannot do certain things. Collection agencies can pursue your debtors but have no legal authority to take action. That’s where a collection lawyer in New York can help. Here’s what to expect when meeting an attorney:
The first meeting
When you go to meet a collection lawyer for the first time, they will start with a comprehensive assessment of your claim, for which they will review the contract and check the paperwork. They will also answer all relevant questions related to the case and educate you on the legal prospects and options that your company can consider. Not all collection lawyers are the same, which is why you need someone who is based in New York and is experienced enough in your sector.
Investigating further and developing a strategy
Your attorney will first investigate to find out more about the debtor. The step may take time and involves synthesizing information and uncovering and analyzing financial records. Lawyers also specialize in finding hidden assets, for which they may rely on digital tools and private sources. For instance, if the debtor claims they have no money but have recently transferred properties to a spouse, your collection lawyer can find those details. They will also find out the best strategies that can be employed for the case and will offer all the legal options so that you can make an informed decision.
Discuss the fee structure
The first consultation should include a discussion on the fee arrangement. At a time when you are already grappling with financial losses due to bad debts, your company may not have the money to pay hourly rates. Fortunately, many collection lawyers work on a contingency or modified contingency arrangement for these cases. Because there is an element of finance involved, the lawyer may take a small upfront fee but will only charge a part of the recovery after you win.
A collection agency can never do what a debt collection lawyer can do for your company. Many firms even have a collections department that can take care of the entire process while adhering to laws that are meant to protect debtors from harassment.