Collecting Past Due Accounts Collection Attorneys – Agencies

Debt Collection Law Firm

Thanksgiving means a lot of different things to different people. However, for a small business it may be time to start looking at different areas of the business that may need adjustments to better help with the overall cash flow of the business.  Collecting on past due account receivables and/or setting up credit and collection   procedures for your company may be one of those areas that with paying closer attention to collecting past due accounts, might make a difference.

Debt Collection Agency to Collect Past Due Accounts

Collection Law Firm to Collect Past Due Accounts

Commercial Collection Agency

Our debt collection law firm offers small businesses a variety of options to consider.  Commercial collection agencies are one way, but our collection attorney has discussed in past blogs the difference between a collection agency to collect past due accounts and a collection lawyer in a debt recovery law firm to collect your company’s past due account receivable.

Our Collection Attorneys Can Help Collect Past Due Account Receivable

Our firm has recently added a flat fee commercial demand letter for payment of debt.  Our clients were asking us for examples or templates of collection letters but, most found that a debt collection letter coming from a collection attorney was more effective than the company simply sending a letter demanding payment.  A company should send a demand letter for payment first, but after time passes it will become apparent when a company is simply stalling or cannot pay on the past due account.  If your company is interested in exploring our debt collection law firm’s flat fee letter to collect on past due accounts, feel free to visit our website.

 

Of course, or debt collection firm offers the same traditional collection agency services – letters and phone calls, but unlike a commercial collection agency, our commercial collection lawyers  will be able to  bring  suit to attempt collection of your company’s past due account receivable when warranted.

 

Collection agencies collection agency debt collection

 Collection Agencies Have Limitations

For most small businesses, having to engage in collecting past due accounts becomes frustrating. For small business owners cash flow is crucial to keeping the lights on and the business up and running.   Having to take the time and resources to attempt to collect past due accounts internally takes away from the time the business should be focusing on their core business.  There are commercial collection agencies to consider. But, perhaps a better alternative is utilizing debt collection law firms who focus their practice on representing business that are owed money. We have talked in past blogs about the limitations of using a collection agency to collect your company’s money.

Collection Agencies Are Not Licensed to Practice Debt Collection Law

A collection agency cannot hold themselves out as a  debt collection law firm nor can they legally practice debt collection law.  Collection agencies send a series of collection letters and then attempt to collect past due accounts by making debt collection telephone calls demanding payment.  Collection agencies also typically will charge a contingent collection fee between 25% to 40%.   If a lawsuit is required to sue a debtor for your money, the agencies typically will raise the contingent fee even higher.

Debt recovery law firm

Debt Recovery Law Firm

Alternative to Collection Agencies

Our commercial debt collection law firm has   designed a new program to offer credit managers and small business owners an alternative to paying a collection agency high contingent collection fees.  We have established www.AttorneyDemandLetters.com .  With this unique debt collection service, a flat fee is offered. We will send out an attorney demand letter for payment of your money and also offer an option for attorney demand telephone calls.  The concept is to “Put the Power of an Attorney Behind Your Demand for Payment.”    It is clear that when your customer sees demand for payment coming from a debt collection law firm rather than a collection agency, your customer will now that their time to contact your company to make payment arrangements is running short.

 

Please visit our website for further information on how you can use the power of a debt collection attorney to help you recover your money. We will show you why it may no longer be necessary to consider using commercial collection agencies to collect past due accounts.

agencies for collection of debt

Collection Agencies and Collection Departments Utilizing Debt Collection Book

Our EBook Collecting Account Receivables has been getting very positive feedback.  Our commercial debt collection clients have told us that they downloaded the book and have had their accounting staff read it. The book helps creditors set up internal debt collection strategies. Discussed is also the difference between a collection agency and a debt collection law firm. Collection attorneys   can provide debt recovery services that commercial collection agencies are not able to provide legally.

DOWNLOAD FREE COPY OF EBOOK

Collecting your money-Debt collection methods

Guide to Internal Debt Collection Procedures

Collection Agencies Hire Collection Attorneys

Collection agencies are limited to making phone calls and sending demand letters for payment. Collection agencies cannot file a law suit, take depositions in aid of execution or garnish bank accounts to seize assets once a judgment is obtained. Obtaining a judgment is not the hard part if a debt is justly owed.  It is how you collect on a judgment. A collection agency is not licensed to practice law and must retain a collection lawyer to implement a litigation strategy to collect on accounts. Collection agencies when forwarding a debt collection case to a collection attorney typically will charge their client’s a higher contingent fee because they have to charge a fee on top of the collection lawyer’s fee.  Many credit managers realize that when it is apparent customer is not paying, it makes sense to retain a debt collection law firm rather than a collection agency. Not only will the credit manager save money but, putting the power of an attorney behind your demand for payment is more effective.

 

Collection agencies serve a purpose when there is a high volume of cases with relatively small balances to collect. We invite you to contact our commercial debt collection law firm to discuss the differences between utilizing a collection agency or forwarding your commercial collection accounts directly to a collection attorney.

debt collector

Senior Debt Collector Joins The Gebeloff Law Group

A Commercial Collection Law Firm

The Gebeloff Law Group has added a Senior Debt Collector to its staff. The addition of the debt collector will assist Mr. Gebeloff in securing prelitigation  payments from debtors. The philosophy of The Gebeloff Law Group is to provide its clients commercial debt collection services in an effective and cost efficient manner. If voluntary payment is not obtained prior to litigation, the debt collector will help gather valuable information about the debtor, including, but not limited to, the nature of the dispute, assets the debtor may or may not have and/ or if the debtor’s officers may have set up other entities in an effort to defraud creditors.

Collection Lawyer Stephen Gebeloff

Collection Attorney Stephen B. Gebeloff

We have discussed in prior blogs the difference between our commercial debt collection law firm and commercial collection agencies. Collection agencies also use debt collectors but, too many times debt collectors are limited in their effectiveness as they are constrained. Collection agencies are not licensed to practice law. A commercial collection agency must eventually send your debt collection case to a collection attorney if the collection agency is unable to collect on your company’s past due account receivable. The collection agency then will charge the creditor a higher contingent collection rate.

 

Our debt collector will also work on post judgment collections. Too many times after a judgment is obtained, not enough pressure is brought upon a debtor to make payments to satisfy the judgment. Commercial collection agencies cannot bring proceedings supplementary to implead third parties and/or pursue third parties for fraudulent transfers. We are optimistic that the addition of our Senior Debt Collector to our staff will increase the percentage of the recovery of bad debt our clients send to our commercial collection law firm.

Please feel free to call our debt collection law firm and ask to speak to one our experienced debt collection staff. We would be happy to discuss the differences between using a collection agency, collection agencies and/or using a collection attorney with a commercial collection law firm to collect your pre-judgment or post judgment debt.

collection attorney-agency eBook

Collection Agency-Collection Attorney eBook

Implementing an effective debt collection strategy for your company

Collection Attorney, Stephen Gebeloff is set to release his eBook to help companies with internal debt collection and external debt collection policies and procedures. The eBook is entitled “Collecting Account Receivables.”   The eBook was written to help companies tighten up their internal collection procedures. The sub-title of the debt collection book is “Don’t Let Your Company’s Money Burn.”

Collecting your money-Debt collection methods

Guide to Internal Debt Collection Procedures

The debt collection attorneys at our commercial collection law firm believe that if more companies were more proactive with their internal procedures relating to collecting their past due accounts, they would find that there would be a higher rate of recovery on accounts that they extend credit to.

The eBook discusses the differences between collection agencies and collection law firms. Using a commercial collection agency can be useful in some situations. However, credit managers should be mindful that a collection agency is not licensed to practice law. When using collection agencies, if the collection agency is unable to collect on an account, they then must send the file to a commercial collection law firm. The collection agency will charge your company a higher contingency fee as the collection agency will act as a middleman and want to retain a percentage of the contingency fee.

 

The eBook also discusses the debt collection process once a file is turned over to either a collection agency or debt collection law firm. Once a lawsuit is filed to attempt collection of past due accounts, the various scenarios are discussed.   The e-Book gives an outline of the debt collection process. The collection attorneys at The Gebeloff Law Group are always happy to answer any questions your company may have. We will discuss the differences between commercial collection agencies, commercial collection law firms and how each may or may not be appropriate to help your company recover past due accounts.

Collection Agencies-Agency

Collection Agencies Refer Their Debt Collection Files from Their Collection Agency to Our Debt Collection Law Firm

We have been discussing the differences between a debt collection law firm and commercial collection agency in several past articles on our debt collection blog. The first thing that our collection law firm emphasizes to our clients who seek our counsel in how to collect on past due collection accounts is that collection agencies are not licensed to practice law.

Collection agencies are limited in the means and methods available to the collection agency in attempting to recover past due accounts.

A typical collection agency will send out a series of collection letters and then make repeated phone calls. In these tough economic times, that usually is not enough. Most businesses today have very tight cash flow and phone calls and letters from a collection agency may not give the debtor enough incentive to make payments to your company first.

Florida Collection Attorney Gebeloff

Florida Collection Attorney Gebeloff

When you engage a debt collection law firm instead of utilizing commercial collection agencies, you know put the power of the imminent threat of legal action behind your demand for payment on the past due account. It is true that the cash flow of a business presented to a collection agency when they are attempting to collect a debt will be the same as presented to the debt collection law firm but, once a debtor is served with a summons and complaint from a collection attorney, the timetables for payment change.


In our next blog post we will discuss what some of the scenarios your company may expect from a debtor after being served with a debt collection lawsuit. A debt collection lawyer backed by a commercial debt collection law firm can provide several different debt collection strategies for your company to consider. We will make clear why using a commercial debt collection law firm over a commercial collection agency may be the better alternative for your company when implementing a debt collection strategy.

DEBT COLLECTION LAW FIRMS COLLECT PAST DUE RECEIVABLES

USING A DEBT COLLECTION LAW FIRM TO ASSIST COLLECT PAST DUE RECEIVABLES

Our collection lawyers recognize, in this tough economy, many businesses are struggling with cash flow. Our collection law firm can assist a company in collecting their past due collection accounts. Our collection attorneys are sensitive to the tough economy and work with our collection clients to implement a debt collection strategy. Not every debt collection matter is the same. Each one of your customers is unique and our collection lawyers work with you to identify the specific issues presented. Our collection attorneys work with you to identify what may have put your customer in a situation where they are now behind in paying their past due invoices.
Our collection law firm will not only send a collection demand letter but, our collection attorneys will investigate the customers corporate status, attempt to speak with the owners of the company and then make a recommendation as to the best debt collection strategy for your company. Sometimes we may suggest that your company may better be suited using a debt collection agency. Our collection attorneys will ask you specific questions that will help you decide whether to use a collection agency or a collection law firm.

Florida Collection Law Firm

Palm Beach County Court House

If your company has many low balance past due accounts, a collection agency may be ideal. However, a collection agency cannot give legal advice and a debt collection agency cannot file a law suit if necessary. Not every debt recovery matter needs a collection lawsuit. That is why it is important to speak to our collection attorneys and decide together a debt recovery strategy. Sometimes it makes sense to place some of your past due accounts with our collection law firm and other accounts with a collection agency.
Call our collection law firm and ask to speak to one of our collection attorneys. Together, we will devise a debt collection strategy that is just right for your company’s past due accounts.

Officer Liability in a Debt Collection Case

When considering strategies to most effectively be able to collect money on a debt owed to your company, an analysis of the corporate structure is vital. The State Department of Corporations give valuable information on how the corporate debtor is structured. Many times in a debt collection case, our collection attorneys find that the debtor’s corporation has been administratively dissolved. That does not necessarily mean the debtor company is still not operating. In that case our collection law firm is able to bring your company’s debt collection lawsuit against the officers of the company in an individual capacity. Our collection lawyer would draft the caption of the debt collection lawsuit …John Johns t/a (trading as) Bob’s Debtor Company.

Our collection law firm believes that keeping pressure on the officers of an entity is a very effective tool in getting your debt collection matter resolved. Most companies set up a corporate structure to shield the officers from personal liability. However, if the company is sloppy and does not keep up its corporate charter, individual liability for the debt may be imposed by the Courts.

Miami Dade Court House

Miami Dade County Court House

Our collection law firm’s collection attorneys also look for evidence that a corporate debtor may have been severely under-capitalized. Our debt collection law firm has brought suit against officers of a company for not having adequate working capital. The theory being that the officers knew or should have known that the debtor entity did not have the financial capability to pay for the goods or services.

If you would like to discuss your company’s debt collection and or debt recovery strategies with our debt collection attorney, feel free to call our debt collection law firm. We would be happy to devise a debt collection and recovery strategy that is custom tailored to your company’s debt collection needs. EMAIL US TODAY

Officer and Director Liabilty in a Florida Collection Case

OFFICER DIRECTOR LIABILITY

Our collection law firm continually looks for ways to assert personal liability on an officer or director of a corporation (“officer- director liability”) when there are no personal guarantees on the account. One way is to see if the corporation is still active on the Florida Department of State Division of Corporations website. If the corporation has been administratively dissolved, we look for the effective date of the administrative dissolution. If goods and services were provided during the time that the debtor was administratively dissolved, our collection attorney will assert that the officer is personally liable for the debt because the corporation no longer was officially in existence at the time. Recent case law in Florida, however, has indicated that if a corporation reinstates, the reinstatement would absolve the officer from liability.

Stephen Gebeloff Florida Colletion Lawyer

Florida Collection Attorney

Our collection firm does not stop there. There our other ways to assert officer director liability. We assert that the debtor corporation was under capitalized at the time the corporation placed the order for goods or services. Thus, we assert the officers and directors had knowledge of this fact or should have known this fact. A prudent director would not order $100.00 worth of product with only $5.00 dollars in the bank. We state our cause of action in the collection lawsuit as fraud.

Please feel free to contact our Florida collection law firm and speak to our Florida collection lawyer about the specifics facts surrounding your Florida debt collection case. You may mail or email your supporting documents to our collection firm. Our Florida collection attorney will review your account and then contact you to devise a strategy for your Florida collection matter.

Stephen B. Gebeloff, P.A.
5255 N. Federal Hwy., 3rd Floor
Boca Raton, FL 33487
(561)953-4600
fax(561)953-4610
steve@gebelofflaw.com