You thought you chose wisely and picked great people to work with your business. However, a supplier, vendor, or a customer has left you high and dry. If someone has not paid you on a bill or hasn’t delivered the goods you paid for, you need to collect what’s owed to you.
Many times, small business owners will try to collect a debt on their own before pursuing legal action. Business owners sometimes are successful through their own efforts in collecting money owed to them. However, oftentimes they are not, and debtors still will not pay up. In this economic downturn, many businesses have been negatively affected due to situations just like this.
So, how do you know when to pursue collection efforts on your own or when to involve an attorney? Here are some examples of when you should consult an Austin debt collection attorney:
When the debt you want to collect is a modest amount, you may be able to pursue the matter in small claims court without an attorney. You would have to pay a filing fee, fill out the necessary paperwork and serve the opposing party. Typically, the decision is made on the same day of your hearing; however, some courts will urge you to work out the dispute through mediation.
If the court provides mediators, you can attempt this route. In order for this to work, both sides must agree to a settlement. This means, most likely you will not receive the full past due amount owed to you. If you are not satisfied with the mediation outcome, you can still continue with the hearing.
Keep in mind that if the money owed is a small amount, it may be best to pursue small claims court or simply write off the bad debt. However, if the money owed to your company is moderate to substantial, then it may be in your best interests to engage an attorney for help collecting the debt.
For more information about debt collection services in Austin, call the Posey Law Firm today. Schedule a complimentary case consultation by calling our office today toll-free at 888.269.1962 or locally at 512-646-0828.