Your business is in a spot of trouble; your debtors are yet to pay their debts, and time is of the essence. Many of you may want to avoid the trouble of using debt collection attorneys and rather consider the more costly option of a debt collection agency. Here’s why you might want to stop and consider rather getting professional legal assistance when dealing with corporate, business and personal debt collection issues.
A debt collection agency is likely to follow the exact same process as yourself; contacting the debtor telephonically and issuing letters of warning. If this has not resulted in payment, why would it be any different if a debt collection agency performs the exact same function? It would not only be a waste of money, but it would just prolong the issue. At the end of the day, an agency will eventually make use of debt collection attorneys themselves.
Illogical Fear Of Courts
Many people fear to approach a debt collection attorney because of the realization of having to go to court. Most of the time the debt collection attorney will head all legal action, requiring little effort from the plaintiff. Aside from providing important information and making an appearance in court, all other duties will be undertaken by the debt collection attorney.
A Debt Collection Attorney Has More Power
By taking the matter to the court, the issue is resolved quickly, especially when using an experienced attorney. By enforcing the state’s hand in dealing with the matter, a final decision made in court will mean that the debtor will have to pay his/her dues or face harsh restrictive credit measures, fines or worse.
The belief is that debt collection attorneys charge more than debt collection agencies. This is often true, but both parties will charge fees according to the length of the debt collection process, hourly rates, and flat rates. Additionally, both agencies, as well as attorneys, are admissible to receiving a portion of the debt owed. Because the legal profession is so time-dependent, it is in the attorney’s best interest to reach a conclusion with regards to the case as fast as possible, costing you or your business less.
Make sure that you contact a debt collection attorney as soon as a debtor shows signs of protracted nonpayment.
For the services of the best debt collection attorneys in South Africa, contact Joselowitz & Andrews Attorneys today.