What to Consider Before Hiring an Attorney for Bad Debt


What to Consider Before Hiring an Attorney for Bad Debt

Most material suppliers and large contractors who are trying to collect bad debt want to get paid without having to go to court. Your company needs attorneys and debt collection firms for different reasons. Before taking legal action, try working with a debt collection firm that is bonded and has experience working in the construction industry.

Attorneys vs. Debt Collection Firms

Attorneys have a role in the business of collecting bad debt from material suppliers and large contractors. Writing contracts takes legal knowledge, lawyers create a strong foundation when you start working with a customer to ensure you don’t get into a collections situation. However, you want to try resolving collection issues with delinquent customers before bringing in the lawyers. This is where third-party debt collection comes in. Before taking legal action, first work with a debt collection firm with experience in construction debt collection.

Benefits of Debt Collection Firms

An experienced debt collection firm can save your business time and money. Successful litigation, enforcement, and collection of judgment can take a long time. Typically, you will see quicker results through a high-quality debt collection firm. Debt collection firms also save you money over an attorney who may require a retainer and bill at an hourly rate.

Bringing in a Lawyer

After using best practices to collect bad debt, sometimes the only option left is litigation. An experienced debt collection firm will know when it’s time to bring in an attorney and work with you to select the right one. When you work with a skilled debt collection firm, you can rest assured that every effort was taken to collect the debt before involving a lawyer.

At The Kaighn Company, we strive to resolve cases without taking legal action. Schedule a time to talk—call 908-319-5155 or email cmdevito@kaighnco.com.

Alison De Vito