Business failures are often due to late payment.
Faced with unpaid invoices, business owners often feel overwhelmed, and need support in their efforts to recover these sums. Unpaid invoices are a direct threat to a company’s cash flow. That’s why they need to be collected. Debt collection is an activity that involves using a variety of means to obtain payment from a debtor. It is at the end of this process that the lawyer has a role to play.
You don’t have to wait until the unpaid debts accumulate or the situation becomes contentious before calling in a lawyer. We can support you from the outset, whether you wish to recover your debt by amicable or legal means.
To help you decide when it’s time to call in a lawyer for debt collection, we’ve drawn up a list of warning signs that you should be aware of.
When should you call on the services of a debt collection lawyer?
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- Large receivables: if the amount of unpaid debt is significant
- Unsuccessful out-of-court attempts: You have tried to collect your debt by negotiating with your creditor, by means of reminders by post, e-mail or telephone. However, these efforts have been unsuccessful and you are unable to obtain payment.
- Debt dispute: you and your creditor disagree on the nature, amount or very existence of the debt. There is, therefore, a dispute about the claim and a dispute between the parties that a lawyer’s expert eye can shed light on.
- Litigation: if amicable collection is not enough, you need to take legal action to obtain payment.
How can I call on the services of a debt collection lawyer?
- Select a specialized lawyer: debt collection is a business law matter. You need to choose a law firm with a business law practice, which will enable you to be represented effectively.
- Gathering evidence: before contacting your advisor, we recommend that you have the necessary evidence to prove the existence of your claim: invoices, purchase orders, delivery notes, account books, contracts, correspondence (…). The more evidence you have on file, the more effective your approach will be.
- Contact with the lawyer: call the business lawyer to ask for an appointment. This will enable you to clearly explain the facts of your case, the documents you have in your possession to back up your arguments, and your collection objectives.
- Action plan: depending on the situation, a plan to collect your debt will be implemented. This may include sending demand letters, negotiating or taking legal action, such as injunctions to pay.
- Follow-up: the lawyer will keep you informed of the progress of the recovery. Depending on the outcome, further steps may be taken.
A lawyer is your ally throughout the entire debt collection process. He or she will bring an expert eye to bear on your situation, and use the legal tools at his or her disposal to unblock it.
DESRUMAUX AVOCATS is an expert in business law and can help you with all your legal needs.
