As a business owner who offered help to your colleagues by lending them money, you didn’t expect that you had to resort to this situation. You’ve spent months trying to chase down your so-called friends just to give them the benefit of the doubt. You’ve sent letters to their homes, received unanswered phone calls and even gave them the freedom to restructure the payment terms to no avail.
It seems that you’ve already exhausted all your options, which is how you ended up choosing between a debt collector and a debt recovery lawyer. Before choosing, Rainey Collins Lawyers noted that you need to understand both:
The Professional Opinion
As long as you’ve done everything you can to get your money back, then you shouldn’t hesitate to get the services of a professional. Start by getting advice from a lawyer who can let you know whether you should push through with the civil courts or if a collections agency is worth it. Not only that, your lawyer will be able to offer you demand letters on legal stationary. It might sound like a minor step, but your debtors will be more motivated to pay up when they receive a correspondence from an attorney.
The Decision Process
If your debtors still won’t budge, then it’s time to decide whether to hire a collections agency, pursue civil courts or simply give up. Choosing between a lawyer and a collector will depend on the amount of the debt. Get a lawyer if the debt they owe is quite large and you’re more than willing to get the courts involved for a lien or a judgment. On the other hand, if you don’t want to go through the hassles of a court, then it’s best to not get a lawyer involved in the first place.
In this case, you could hire the services of a debt collector. They use automated systems to notify your debtors frequently. In the end, you’re the only one who could decide which of these entities should help you out in collecting your debt. Be sure that you do some research before choosing any of them.