For some companies, collecting what they’re due proves to be a challenge of patience and sometimes logistics. In some cases, they have to turn to the courts to order payments. Enforcement of these orders may involve methods such as bank levies and garnishments. A garnishment is a court order for a certain portion of future deposits to be sent to the company that’s owed money. A bank levy is different because it orders a bank to turn over the contents of an account to a company that’s owed money. Serving the bank levy In California, a bank levy is a legal tool executed by a sheriff or a registe ..read more

Getting the money you’re due can be challenging, especially when debtors ignore the invoices you send. Once you realize that ordinary approaches aren’t going to produce the results you want, you may decide to move forward with more pointed collection attempts. One of the first steps in this process involves crafting and sending a demand letter. This is a very specific document that should be prepared with a professional tone. What does a demand letter do? A demand letter is a written notice that informs a debtor that they are obligated to repay a specified debt to your company. This communicat ..read more

Forensic accountants often serve as crucial resources for debt collectors. They provide specialized expertise that extends beyond traditional accounting practices. Their role is to provide a detailed and systematic examination of financial records to uncover facts and insights beneficial for debt collection. The information gathered is particularly valuable when dealing with complex accounts where standard collection efforts have stalled due to the debtor’s secretive financial activities. Debt collectors should ensure they have as much information as possible when they’re trying to collect. Du ..read more

Debt collectors have a challenging job because they depend on collecting money from people who might be actively avoiding their debts. The complexity of this job requires them to employ various methods to be able to collect effectively. Understanding a few different types of debtors whom they might come across may help debt collectors to enjoy more favorable results. The assertive non-payer This type of debtor makes bold assertions about their ability to pay but fails to follow through. They may promise imminent payment or agree to payment plans with no intention of adhering to them. The asser ..read more

The legal system is slightly different in every state. Statutes and court precedents are slightly different from one jurisdiction to another. Some people try to use that fact to their advantage when they face legal consequences for their actions or choices. They might intentionally relocate across state lines in response to legal troubles in one location. They may do this to limit the options of the other party and avoid additional enforcement efforts. Someone who recently lost a debt-related court case in Washington might move south to California as a way to avoid the negative impact that a p ..read more

Debt collection can be a very difficult process for a business. Most companies do not have a specialized debt collection department, and even those that do may only have a few employees working in that area. The more complex a situation becomes, the more likely the company is to require outside help. Oftentimes, businesses owed money by other organizations or individuals seek help from professionals, including lawyers. After all, once a debtor has proven that they are unwilling to prioritize meeting their financial obligations, creditors may need to look into more aggressive solutions than vol ..read more

According to the Consumer Finance Protection Bureau (CFPB), medical debt is the most frequent kind of collection actions that appears on consumer credit reports. A whopping 57% of collections of this kind are related to medical debt. Yet, debt collection activity related to overdue medical bills declined by a truly significant 37% between 2018 and 2022.  The sense is that fewer debt collectors are reporting collections activity related to medical accounts to the major credit bureaus. But, it is also quite possible that fewer debt collection efforts are being made concerning overdue medica ..read more

In California, the statute of limitations on debts is a critical legal boundary that debt collectors must be acutely aware of. This period dictates when a creditor or collector can legally sue to collect a debt. The statute of limitations on debts in California varies depending on the type of debt in question. Understanding this limitation is essential for effective debt collection because attempting to collect a debt beyond this time can lead to legal complications and potential violations of consumer protection laws. Written contracts Written contracts form the backbone of many debt transact ..read more

Creditors trying to collect on a debt may feel like they are at the mercy of debtors. It can be very difficult to contact someone who does not want to take responsibility for their financial obligations. It can be even more difficult to convince them to pay their debts if they do not see the value in doing so. As such, those who do not take responsibility for their financial obligations can cause challenges for others, including businesses that provide them with services or lend them money. Collecting on a debt can prove challenging, especially if a business does not have a dedicated collectio ..read more

Social media has proven to be a very valuable tool for businesses. It has never been easier to create a strong brand and to quickly connect with a specific demographic of customers. Targeted advertising on social media and the freedom of expression on social media platforms has made it easier than ever before for businesses to engage in highly effective and affordable marketing, even without a team of specialists. Yet, social media isn’t just useful for converting fans and customers into new sales. It can also play a very important role in other aspects of company operations. Can different soc ..read more