Debt Recovery Lawsuit

Where Should Your Company File a Debt Recovery Lawsuit

The question is often asked by our commercial debt collection clients where should suit be filed against their customer with delinquent account receivables when their customer is not located in the same State. There are two choices. A debt collection lawsuit can be brought in the State where the client is located or a collection lawsuit can be brought in the State where the client’s customer is located to attempt recovery of the debt.

Bringing a debt recovery lawsuit in the State where the client is located has logistical advantages but, not always the fastest way to recovery debt from a customer who seems to be intentionally ignoring the obligation to pay. It is true that our client may not have to incur the cost of traveling to the debtor’s State to attempt recovery of the debt but, typically if the debt recovery suit is brought in the client’s State the debtor will simply ignore the suit and a default judgment will be obtained. At that point, the client will then have to domesticate the judgment in the debtor’s State to be able to seize the debtor’s assets. This slows down the debt recovery process.

Debt recovery law firm

Debt Recovery Law Firm

Our commercial debt recovery law firm recommends that   debt collection lawsuit be brought in the debtor’s State. If the debtor is still operating that is where the debtor’s assets are going to be to levy and or garnish. It is true that the client may have to travel to attend trial but, typically if a debtor is simply stalling and not offering any legitimate defenses, our debt recovery attorneys have found that the same default judgment can be obtained in the debtor’s State and debt recovery efforts can begin sooner. In this scenario the client would not have to travel at all. The default judgment could be obtained simply by providing an affidavit as to the delinquent account receivable.

Our debt recovery law firm has a network of highly skilled debt recovery lawyers throughout the United States. Please call our debt recovery lawyers and discuss what the best strategy is to pursue recovery of your delinquent account receivables no matter where your customer may be located.