Given that 71 million US adults have debt in collections reported in their credit files, it’s no wonder that creditors everywhere are looking to hire lawyers to manage pre-litigation collections. Pursuing an overdue debt by yourself is difficult, pricey, and usually bound to fail.
Should you hire a lawyer to oversee the pre-litigation process? Doing so will improve your chances of getting repaid without having to resort to lawsuits.
Getting Repaid Through Pre-Litigation Debt Collection
What should you do when someone owes you money but refuses to pay up? You may think that calling them at odd hours of the night or visiting their workplace to embarrass them could lead to repayment, but you would be making a costly mistake.
Pursue debt collection by yourself, and you’ll likely violate the rights of your debtor. This could lead to a costly lawsuit that wipes away the debt they owe you. A court order may even require you to give money to the same debtor who refused to pay you in the first place.
Unlike ordinary folks, debt attorneys understand collection laws and avoid any violations of debtor rights. Debt collection lawyers will help you get repaid quickly while avoiding the simple mistakes that could end up landing you in court.
Debt collection attorneys also help you secure pre-litigation collections that allow you to get paid without having to file a lawsuit that takes time, effort, and money to pursue.
A majority of debts go uncollected. Unless you want your debt to become an unfortunate statistic, you need the help of a legal expert. Luckily, the debt collection attorneys at Hanna & Jarbo have an astonishing 85% success rate for all accounts under collection.
Pre-Litigation Debt Collection Strategies
There are three major strategies for pursuing debt collection in the pre-litigation period. They vary in aggression, effectiveness, and the extent to which they expose you to legal jeopardy. The experts at Hanna & Jarbo can manage pre-litigation collections and formal lawsuits.
In-house collection attempts
An in-house collection attempt is when a creditor tries to personally reclaim an unpaid debt without any third-party assistance. Rather than hiring a debt collection agency or lawyer, those owed money try to manage the collection process themselves.
Trying to collect debts by yourself exposes you to legal liability, takes a long time to complete, and has a poor track record of success. You can easily run afoul of national and local debt collection laws that protect debtors by attempting to collect a debt yourself.
In-house collection attempts are also easily ignored by the debtors who owe you money. A debtor has little reason to fear the average creditor, whereas collection agencies and lawyers have established reputations and the legal power to win a case in court.
Mediation refers to when the debtor and creditor come together and negotiate with an impartial third-party “mediator” to settle the outstanding debt. Mediation is less serious than a formal lawsuit that could drag on for months and pit both parties against one another.
Mediation usually begins when a court appoints an impartial legal expert to bring the creditor and debtor together to discuss settling the debt early. Ideally, a middle ground will be reached, and both parties will walk away happy with the results.
Mediation avoids the formal phases of litigation and allows for a more informal, relaxed legal process to occur. If debtors and creditors are on good terms with one another but simply can’t agree over a debt, this option is often preferred over more heated and costly lawsuits.
Debt collection pre-litigation notifications
Pre-litigation notifications are messages that are sent to debtors to inform them about an unpaid debt. Examples of pre-litigation notifications include “NTQs,” or “notices to quit,” which are documents that usually must be presented to debtors before they’re evicted.
A notification like this is usually the first step in securing pre-litigation collections. By informing debtors that they need to repay what they owe, a settlement may be reached.
Pre-litigation notifications are usually managed by a debt collection agency or established debt collection attorney. They understand what documents must be legally provided to debtors before more serious legal steps can be taken if the debt remains unpaid.
Some creditors may think that they can call up debtors or send them mail without the help of a debt collection agency or attorney. In reality, it’s easy to make a small mistake that could end up forfeiting your debts. For instance, you may break the law by calling them at work.
What About Unresponsive Debtors?
You’ve tried everything yourself only to discover that debtors are still ignoring you. What steps should you take when it seems like getting repaid is becoming impossible?
The debt collection experts at Hanna & Jarbo are prepared to oversee the pre-litigation phase and the actual phases of litigation in a real court. In addition to sending a pre-litigation demand letter, our attorneys will handle the actual lawsuit as it unfolds.
Late vendor payments, violated business contracts, and unpaid rent can all be rectified in the courtroom by our attorneys. While you focus on running your company, Hanna & Jarbo’s debt collection attorneys secure and enforce money judgments against stubborn debtors.
Hanna & Jarbo also stands ready to help with consumer debts such as property disputes. Our team of legal experts ensures that personal disputes are quickly resolved with pre-litigation collections or court-enforced judgments against debtors.
What If My Debt Isn’t Worth Suing For?
You should never give up on the prospect of getting repaid. Hanna & Jarbo can help you sell your debt to others, write it off entirely, or collect every last penny that you’re owed. Even if your debtors can’t be located, our attorneys can help you find other repayment options.
Are you having trouble determining whether your debt can be collected? Our legal experts possess years of experience and can help you decide whether your debt is worth pursuing.
Hanna & Jarbo never charges clients out of pocket. You won’t pay a penny unless and until your debt is completely collected. Isn’t a free chance to get repaid worth taking?
How Hanna & Jarbo Help You Get Paid
Hanna & Jarbo’s debt collection attorneys have an 85% success rate. You won’t find better debt collectors anywhere in the Midwest. We fight on your behalf by tirelessly pursuing your debts without charging you until they’re repaid.
The notices we send to debtors are legally compliant and effective at getting their attention. We save you time, money, and prestige by avoiding costly legal mistakes that could lead to the forfeiture of your debt. Unlike collection agencies, we have the power to go to court.
Specialty Practice Areas
Our expertise goes far beyond pre-litigation collections. In addition to overseeing pre-litigation discovery and the phases of litigation in an actual courtroom, we offer services to creditors from every major industry.
Construction firms, landlords, contractors, and vendors are only some of the happy clients we’ve gotten repaid over the years.
- 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
How To Contact Hanna & Jarbo
Get in touch with us and start getting repaid today by following these three steps:
- Set up a free consultation call with our experts at 18.104.22.16886
We’ll explain everything you need to know about debt collection.
- Provide us with the details of your debt
Give us your debtor’s information, and we can immediately begin the pre-litigation collections process. We’ll identify their location, send a pre-litigation demand letter, and begin determining the best method for collecting what you’re owed.
- Sit back and relax
Your job is over – now the debt collection experts at Hanna & Jarbo will quickly get to work and ensure you’re repaid. From pursuing pre-litigation collections to enforcing post-judgment orders from a court, we’ll do whatever’s necessary to get your money back.
Benefits of Hanna & Jarbo
Our record of success in 85% of all cases speaks for itself. We never charge clients out of pocket, always pursue fair and legal pre-litigation collections, and effortlessly enforce court judgments after winning lawsuits on your behalf.
By getting it right the first time, we save you money and teach future debtors to pay what they owe before a debt becomes delinquent. You won’t find better debt collectors anywhere in the Midwest.
What does pre-litigation mean, anyway?
This refers to collecting the money you’re owed without ever going to court, filing a lawsuit, and beginning a formal legal process. Instead, the debtor pays what they owe without a costly legal battle.
What does it mean to litigate a case?
Litigation is a formal legal process that’s carried out by expert attorneys. Litigating a case refers to actually filing a lawsuit, taking someone to court, and arguing your case in front of a judge before receiving a final judgment that both parties must adhere to.
What is a pre-litigation settlement agreement?
This refers to a mediated agreement that both parties agree to in order to settle an outstanding debt. A pre-litigation settlement between a creditor and debtor could be resolved by a mediator who requires the debtor to pay up 75% of what they owe before dismissing the remainder of the debt.
What does litigation mean in a lawsuit?
Litigation usually refers to actually filing a lawsuit against someone else and taking them to court. To “prepare for litigation” usually refers to hiring an attorney to either issue or respond to a lawsuit.
What’s a pre-litigation settlement offer?
This is an offer made by either the creditor or the debtor to the opposite party with hopes of resolving the debt without going to court. For example, a creditor may offer the debtor a chance to pay off half of what they owe immediately and the rest of what they owe on an established schedule.
Pre-litigation collections often refer to making successful debt settlement offers that the other party agrees to. That way, creditors are repaid without ever having to go to court.
Get Paid Today With the Help of Hanna & Jarbo
Our debt collection attorneys win the majority of their cases, never charge you out of pocket, and have the best record in the Midwest.
Contact us today and start getting repaid!