Debts are an unfortunate fact of life, whether you or your business owes them, or whether a second party has borrowed money from you. Usually, debts can be easily managed in a way that both parties are happy with. However, sometimes the debtor is unwilling or unable to repay their debt.
This puts the debtee in a difficult situation, especially if they are an individual or small business that relies on this money to get by. If this is the case, then they need to take steps to ensure that the debt is repaid and that they can move on.
Sometimes, in cases involving two individuals who have entered into a casual agreement, the issue is that the debtor simply doesn’t have the funds available. This is unfortunate for both of you, but the issue can sometimes be solved easily and without hard feelings on either side. If the debtor is willing and simply has a funding problem, then revisiting the initial agreement and coming up with a payment plan that works for both of you can be possible and preferable to taking it further.
If the issue can’t be solved informally, then it may be time to look at the legal options on hand. Depending on the amount of money lent or the two parties involved, you can still avoid court proceedings and the mounting costs involved. Using a mediation service provides you with a neutral third party who will help you to find a solution.
However, sometimes things have to go further. You may benefit from hiring a debt collection service or attorney if the debtor owes you a significant amount of money and the case is likely to end up in court. The attorney can either send demand letters before you sue, potentially avoiding court entirely. If the case does end up in court, then this kind of attorney has experience in the matter and so is more likely to win the case for you.
Another reason to hire a service like this is if a large company owes you money, as large companies are often both willing and able to fight their debts. They have a lot of resources at hand, which a debt collection service will be experienced in handling. Companies in certain niche industries may require you to involve a debt collection service that specializes in that industry, like a Cannabis Debt Collection service that is adapted to deal with the legal cannabis industry, for example.
Simply put, involving a third party allows you to focus less on pursuing the debt while ensuring that it will still be effectively dealt with. Debt collection is a difficult enough process as it is, so trained professionals can help everything to run as smoothly as possible. If the case does end up in court and the debtor is ordered to pay off the debt but is unable to do so, the third party can still help you regain your assets as the case progresses.
