Legal Question in Credit and Debt Law in New Jersey

Re: Collecting account recievable monies

There is no single best way to collect. Much depends on what kind of accounts are delinquent, for how much, and how often that happens.

If you have been following my answers in this forum, you will know that I often suggest that every business have some relationship with a lawyer who takes an interest in their business and who can advise them on issues such as this. Now might be a good time to find such a lawyer in your area.

See also: http://info.corbettlaw.net/lawguru.htm

Re: Collecting account recievable monies

Based on your posting I assume you mean what is the process to collect a past due account receivable using a collector or collections attorney.

A collector (non-attorney) can only call or send letters (or in rare instances will make site visits). Those are the only tools they have in their tool belt for commercial (Business-to- Business) collections.

A collections law firm, on the other hand, has the ability to pursue the claim through the law courts and obtain a judgment on your behalf and enforce it against the debtor's assets. In addition, a law firm (but not a collector) has the ability to enter into a payment arrangement that will result in a judgment for you if the debtor defaults.

Collections work is typically done on a contingency fee basis where the fee is contingent on recovery. There is usually also a small non-contingent fee (called a suit fee) due as well upon filing of a lawsuit. The fee is lower if there is a recovery prior to filing a lawsuit (and also no suit fee would be owed). Client is responsible for costs of litigation and is required to provide a cost deposit prior to filing a lawsuit. The amount of the deposit varies depending on the court.

For further info. please visit the Frequently Asked Questions (FAQs) regarding Commercial Collection on our website at http://www.starrandstarr.com/lawyer-attorney-1354129.html

The foregoing is intended as general information of interest to readers of this website and is not intended as legal advice for your situation. You should consult with an attorney.

Best regards,