Does someone owe you money and they failed to pay despite your constant reminders? To manage expenses, the cash flow of your business should be consistent. Therefore, it is detrimental to your business when a debtor fails to pay you on time. You must wonder if you should use a judgment collection agency to recover your money. What should you consider to choose the best judgment collection agency?
Judgment collection
Someone might have your debt but show no signs of making the payment. You may have sent them the invoice, but they failed to respond, and every attempt to collect the debt was futile. As the creditor, you finally take your debtor to court and sue them. The court then issues a judgment in your favor, and you receive a legal document that states you are owed money. However, the authority of the court to compel payment is minimal. It is, therefore, essential to know how to collect on a judgment.
The court ruling allows the judgment collection agency to use stronger tools and techniques to recover the debt. Research the assets and income of the judgment debtor that can help to recover your debt before contacting the collection agency. The debtor’s personal property like vehicles, intellectual property, or real estate, is seized and sold off. To request the debt settlement, the agency will contact the debtors via phone, mail, or text within certain hours of the day. They must identify as debt collectors and give a notice stating the amount owed. After getting the final judgment, ensure you meet the deadline, or it becomes invalid. You can extend the deadline by legally renewing the judgment in court.
Tips to choose the best judgment collection agency
- Do your research.
Visit their websites and review their online presence to know their credibility and the services offered.
- Communicate with the agency.
Call the agency, explain your problem, and ask them to explain the debt collection process.
- Ask for referrals.
Ask a trusted business associate or friend to recommend a firm they had a good experience working with. Visit the agency’s website, and view testimonials and success stories from previous clients.
- Pricing.
Ensure the collection process is transparent and the fee is based on a successfully provided service. Compare the pricing to other agencies in the market. Work with a collection agency that will charge you a percentage of the debt collected. If the debt collection is unsuccessful, you will not be required to pay the agency.
- Accreditations.
The agency should have authorization from the Financial Conduct Authority or a member of the Credit Services Association. If they have won awards, that is an added advantage.
Conclusion
Debt collection can be hectic if the debtor fails to pay the debt voluntarily. After getting a final judgment in court, a judgment collection agency can help you recover your money using stronger tools and techniques. To choose the best judgment collection agency consider accreditations, pricing, referrals, and proper communication with the agency.
