Litigation and lawsuits can result in expensive legal fees that deliver financial ruin to the landlords, business owners, and creditors trying to collect the money they’re owed. A practical guide is needed to collect debts quickly and affordably.

Debt collection doesn’t always end in a lawsuit, but litigation is the most effective way to secure repayment from a stubborn debtor who has been dodging your calls.

With the help of a lawyer, the mere threat of litigation alone may secure repayment.

The experts at Hanna & Jarbo are ready to manage litigation and lawsuits on your behalf. Here’s how to approach litigation, win your lawsuits, and collect unpaid debts.

What Is Litigation and What’s the Role of Lawsuits?

Litigation refers to the formal legal process of taking another party to court to settle a dispute. In the context of debt collection, litigation usually refers to suing a debtor to secure a court order that will force them to pay what they owe to a creditor.

Lawsuits play a critical role in securing unpaid debts. Many debtors refuse to pay what they owe for various reasons but can be forced to repay by a court order issued by a judge with real legal authority. For many creditors, lawsuits are the best way to collect.

Litigation and lawsuits are sometimes simply threatened to convince a debtor that repaying a delinquent debt immediately is the wisest choice. With the help of excellent lawyers, many creditors secure repayment by credibly threatening costly legal proceedings.

Many creditors are torn between wanting to sue and worrying that it will cost more than it’s worth. A certified legal expert can help you determine when it’s the right time to threaten a lawsuit and when actual legal action must be taken.

When Should You Litigate?

Lawsuits and litigation can be difficult and time-consuming to pull off successfully. Creditors who want to avoid wasting valuable time and money should learn to recognize the ideal opportunities for litigation and when they need to simply bide their time.

Litigation is often referred to as a last-ditch measure. If a lawsuit to collect a debt fails, few other alternatives are available. Creditors are thus encouraged to delay litigation and lawsuits until they have no other options to depend upon when it comes to getting repaid.

Many lawyers will start by sending demand letters to debtors. These formal letters are carefully written by legal experts to guarantee that a debtor is informed of their outstanding debt, how much they owe, and who to contact in order to repay it. These tactics are sometimes referred to as pre-litigation collections.

Creditors should never manage demand letters themselves. Instead, hire a certified attorney who can manage such correspondence on your behalf. Otherwise, a creditor may inadvertently violate important laws like the Fair Debt Collection Practices Act that safeguard debtors’ rights and determine which debt collection methods are legal.

Creditors will know that the time is right for litigation and lawsuits when their attorney(s) recommend it as an ultimate option to settle a case once and for all. Until then, never contact a debtor personally, but rely instead on your attorney to manage such communication.

Understanding the Process of Litigation and Lawsuits

The actual legal process begins when a creditor and their attorney file a claim in a state court against the debtor who owes money. Debtors will be listed as the “defendant,” as they’re defending themselves against charges that they owe outstanding payments to a creditor.

Creditors and their lawyers will then “serve” the debtor, which refers to informing them (with legal documents) that a legal case is being brought against them. A case cannot truly begin until a debtor has been “served.” This is why tracking down debtors is so important.

Both parties may voluntarily arrive at a settlement or an agreement to resolve the debt that doesn’t require the involvement of a court. If no settlement is reached, a hearing is scheduled so that a judge can determine whether the debt will be collected or not.

At this stage, debtors can defend themselves in court and provide any evidence which proves they shouldn’t have to pay the debt in question. Creditors will argue the opposite, providing documents and proof that they’re owed money by the debtor.

Finally, the court will issue a judgement based on the evidence presented at the hearings. The judge will determine if the debtor must repay what they owe or if the debt is to be dismissed. The judge’s determination is effectively the final verdict, settling the case.

The judge will also help determine the manner of repayment; litigation and lawsuits regarding debt collection often end with wage garnishment, or taking a small portion of a debtor’s paycheck until their debt is fully paid off.

Need Help Litigating? Contact Hanna & Jarbo.

The lawyers at Hanna & Jarbo have an astonishing 85% success rate in all debt collection cases. Creditors who depend on our legal expertise are quickly repaid in full thanks to our extensive experience collecting debts in every commercial sector.

Hanna & Jarbo never charge clients out of pocket – we don’t get paid until your debt is successfully recovered. By scheduling a free consultation call, you gain valuable insights into litigation and lawsuits that will save you huge sums of money and avoid legal peril.

You won’t find better debt collection services anywhere in the Midwest. Our years of experience in every sector imaginable have prepared us to win your case under any circumstances.

Over the years, we’ve accumulated legal victories in these specialty practice areas:

Specialty Practice Areas

  • Supplier Account Receivables
  • Returned Checks (including charge-back credit card payments)
  • Landlord-Tenant Debt & Money Judgments
  • Charged-off or non-paying commercial credit portfolios
  • Construction debts
  • Auto loan and deficiencies
  • General loans, notes, and credit lines in default
  • Secured and unsecured judgments or liens
  • Foreign (non-Michigan) judgments
  • Mortgage/Land Contract deficiencies
  • Other commercial paper receivables

What does working with us look like?

1. Set up a free consultation call. We’ll explain everything you need to know about debt collection.

2. Give us your debtor’s information. We need to know what to collect. Invoices, IOUs, leases, or promissory notes. Whatever you’ve got, we can use it.

3. Sit back and relax. You don’t have to do anything further while we track down and collect your debt. We’ll do whatever is necessary to get your money back.

Benefits of Working With Hanna & Jarbo

Hanna & Jarbo take the hassle out of litigation and lawsuits by managing the entire legal process on your behalf. No more late-night legal research, costly debt collection agencies, or hunting down the delinquent debtors who keep dodging your calls.

Hanna & Jarbo, PLLC offers some of the most cost-effective debt collection services available – we never get paid until your debt is fully collected. Scheduling a consultation call is free, ensuring that you can start getting repaid without having to cough up a penny.

Our 85% success rate in debt collection speaks for itself. You won’t find better debt collection services anywhere in the Midwest. By working with Hanna & Jarbo, you’ll get debt collection right the first time, avoid legal peril, and quickly collect the money you’re legally owed.

Contact Hanna & Jarbo today to take the stress out of litigation and lawsuits as you get repaid.