With over 71 million Americans having debt in collections, there are untold millions out there waiting to be repaid. Many business owners and contractors are owed huge sums of cash they may never see or spend without a debt collection attorney.
If you’re a business owner asking, “Should I hire an attorney to collect debt?”, the answer is an obvious yes. Collecting debt on your own is expensive, time-consuming, and frustrating. Here’s why hiring lawyers for debt collection will ensure a speedy payday comes your way.
What Does a Debt Collection Attorney Do?
Debt collection attorneys are responsible for taking actual legal action against debtors to reclaim overdue payments. They possess the legal expertise needed to navigate court battles from the start of the case until the end.
Unlike collection agencies which may simply call debtors or solicit their information, a debt collection attorney might take more severe steps like filing a lawsuit or enforcing a money judgment from a court after a case has been won.
Debt collection attorney vs. hiring a collection agency
Like collection agencies, debt collection lawyers can also send debtors notices reminding them that it’s time to pay what they owe. Demand letters sent by an actual debt collection attorney may be taken more seriously than letters from mere collection agencies.
While lawyers may be willing to contact debtors on a creditor’s behalf, they will usually avoid harassing phone calls or contacting a debtor’s colleagues for their information.
Collection agencies will frequently contact debtors but have limited means of actually collecting unpaid debts.
A collection agency is far more likely to contact credit reporting bureaus about debtors. By notifying these credit organizations of delinquent payments, they diminish the credit ratings of debtors.
Lawyers are far more likely to initiate actual legal proceedings and enforce collections in the wake of legal victories. Debt collection attorney fees often reflect that these experts have more “bite” to match their “bark” than humbler debt collection agencies.
How Do I Know if I Should Hire an Attorney To Collect Debt?
When is the right time to hire a debt collection attorney? For most business owners, the answer is “when you’re ready to stop asking for repayment and start demanding it.” Unlike debt collection agencies, lawyers for debt collection are hired to initiate imminent legal proceedings against debtors.
But how much does a debt lawyer cost? How long will the process take? Is there really a guarantee that hiring a debt collection attorney will yield dividends down the line?
It’s not uncommon to hire a debt collection attorney after you’ve first retained a cheaper debt collection agency. If that agency can’t do the job, you then move up the ladder to a debt collection attorney who can initiate a lawsuit.
For those who are only owed a few hundred dollars, lawyers for debt collection may prove to be too forceful of a tool for the job. However, retaining a debt collection attorney as soon as debts become delinquent is the best way to get paid for business owners owed thousands.
How Much Does a Debt Collection Lawyer Cost?
Debt collection attorney fees vary widely, but any lawyers for debt collection are sure to be more affordable than the immense price of abandoning the money you’re owed.
A debt collection lawyer may charge clients more money if a debt is particularly challenging to collect; when debtors are missing and must be tracked down or have retained solid legal counsel of their own, lawyers may charge more.
Some debt collection law firms will only charge creditors after a debt has been successfully reclaimed. In other words, they’ll only get paid if they can get the job done.
Are debt collection attorney fees worth it?
Hiring a lawyer entails pricey legal fees. Some business owners may be hesitant to chase a debt for that reason alone. Yet, there are ways to pay for your debt collection attorney fees.
Some debt collection attorneys never charge until they’ve successfully reclaimed a debt. Others have prices that will change based on regionality and the debt in question.
If you successfully sue a debtor, you may be able to recover some or all of your legal fees. Nevertheless, remember that some debtors may be incapable of paying such legal fees under any circumstances, so don’t always count on this method to cut costs.
While hiring a debt collection attorney isn’t ideal for small claims, it’s likely to make debtors take you more seriously. Being able to threaten a lawsuit is itself a powerful tool.
What To Expect When Working With a Debt Collection Lawyer
A debt collection lawyer will understand the intricacies of the law and possess a solid commitment to ensuring your speedy repayment. Begin by explaining to your attorney that your debt collection agency failed to get the job done.
Next, describe the specific debt in question and provide any details on the debtor that you already have. Tell them whether you’ll need help identifying the current location of your debtor. Next, ask them to tell you about sending a letter to the debtor to kick off the collections process.
If you hire a private lawyer, you’ll want to identify an attorney with whom you can get along. As your sole representative, they’ll be your point of contact with debtors throughout the legal process. Failing to clearly communicate or get along with your attorney early on is a sign you should look elsewhere.
If you hire a law firm, you’ll want to identify a strong firm with admirable principles and a history of success. Find a collection firm that can boast a stellar success rate and only charges clients when a debt is successfully collected.
How To Properly Hire an Attorney To Collect Debt
Try to find a local debt collection attorney. A lawyer from your region will understand local laws and precedent, and has probably previously helped other creditors in similar situations.
You should pay careful attention to how much they charge you; the best debt collection lawyers never get paid unless the job is successfully completed. You should also make sure that you have multiple lines of communication with your attorney so that they can reach you whenever necessary.
Finally, cease all personal contact with debtors once you’ve retained a debt collection attorney. You hired a debt lawyer for a good reason – let them work on your behalf. Involve yourself in the process, and you may end up violating a law or scaring off the debtor.
You can’t properly hire an attorney to collect debt until you’ve identified the right law firm for the job.
Still Not Sure What To Do? Get in Touch With Hanna & Jarbo
Looking for a debt collection attorney that produces immediate results? The debt collection lawyers at Hanna & Jarbo are the most successful recuperators of debt in the Midwest.
With an 85% success rate in all cases, Hanna & Jarbo’s attorneys will tirelessly fight to ensure a quick repayment of all delinquent debts. Without our help, your legal battle could drag on for months.
Contact our lawyers to ensure you get repaid in full. Hanna & Jarbo never charges clients until a debt is repaid in full. By contacting us today, you’ll begin to collect your unpaid debts without having to pay a penny.
Our specialty practice areas
Hanna & Jarbo possess expertise that goes beyond debt collection. Our lawyers help Midwestern businesses manage legal disputes, contracts, and loans.
Midwestern creditors can rest assured that Hanna & Jarbo will collect any of the following:
- 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?
Start collecting your unpaid debts with Hanna & Jarbo by taking these simple steps:
- Set up a consultation call. We’ll guide you and lead you through the debt collection process.
- Provide us with the debtor’s information. This ensures we understand what you want collected and who to contact.
- Sit back and relax. It’s that easy – we’ll take care of the rest and report back with results.
Benefits of Working With Hanna & Jarbo
Hanna & Jarbo collect your unpaid debts without any effort on your part. Our lawyers for debt collection have an astonishing 85% success rate and don’t receive payment until your debt is fully collected.
You won’t find more successful debt collection services anywhere in the Midwest. Our experts possess years of experience, get the job right on the first try, and never charge out of pocket.
Our reputation precedes us. Debtors always cough up what they owe when we make contact on your behalf. Hanna & Jarbo are the first and last debt collectors you’ll ever need.
Contact Hanna & Jarbo And Start Collecting Debt Today
Don’t waste your time and money chasing down debtors alone. It’s ineffective, expensive, and exposes you to legal liability. Contact our lawyers for debt collection at Hanna & Jarbo to start seeing immediate results.