Businesses in New York often rely on debt collection agencies to manage their invoices, unpaid debts, and bills. These agencies can act as per the rules set by the Fair Debt Collection Practices Act (FDCPA) to collect debts but cannot threaten or sue a debtor. If you hire an agency for debt collection, they will charge a percentage of the debts collected for your business. What happens when your debtor refuses to pay? You could possibly sue the delinquent debtor and get a judgment, but that still doesn’t guarantee that you will get your money back. That’s where a New York collection lawyer can help. The role of an attorney is different from that of a collection agency because they have the legal expertise and scope to take action.
Understanding the basics
Judgments often go uncollected, and you would be rather shocked to know as over 75% of all judgments are not enforced. Also, securing a judgment is only part of the work. If the debtor still refuses to pay or takes evasive measures, you have to find a way to seize/attach their assets. A debt collection attorney knows the legalese and can explain the laws and legal options at hand. An attorney can do the following and more –
- Find the location of the debtor (if the debtor cannot be located)
- Locate assets of rogue debtors
- Work with enforcement officials as needed (wage garnishments)
- Help with domesticating a judgment
- Advice on settling a judgment
Creditors often have a hard time getting their money back, and while agencies can help in recovering money to an extent, there are certain limitations. Attorneys know what it takes to collect money, but they don’t necessarily pressurize the debtor for money. Instead, they follow the legal route to find information and ensure that a debtor doesn’t use means like fraudulent bankruptcy to evade a judgment. No matter where you are located in New York State, you can expect an experienced collection lawyer to help you with key aspects.
As for the costs, collection lawyers in NY usually take an hourly rate or a contingency fee. Depending on the work at hand, some lawyers can also settle for a flat fee. Nevertheless, you will benefit from the experience and expertise of a collection lawyer. Hire one without delay if you are already dealing with a judgment with no sign of possible repayment.