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Home » Nashville Business Law » Collections Procedures in Nashville

Collections Procedures in Nashville

business-collectionsEncouraging parties who owe debts to your business can be a frustrating process. In many cases, debtors are not exclusively facing financial obligations to just one company. Regardless of the type of industry in which the charges have accumulated, it can be difficult to prompt those in debt to prioritize their outstanding charges that they owe toward your business, but with good legal representation, it’s possible to take actions that encourage debtors to take affirmative action in paying of the money they owe.

Collections Procedures

Debt collection procedures can be summarized in the following steps:

  1. A letter of demand is promptly sent to the debtor, clearly stating the intentions of your company in the event that the obligation is not paid. This typically involves the threat of litigation. One might call this first step a “warning.”
  2. If the debtor is unresponsive to the threat of litigation, the next step is to start the legal processes. Oftentimes, this encourages an immediate response since it proves that you’re serious about fulfilling the promise issued with your warning statement. Litigation is frequently concluded before matters can get more complicated – when a debtor has a reasonable fear of a more substantial lawsuit, this is typically enough of an incentive to prompt swift payment.
  3. If the debtor fails to meet the obligation set by the settlement reached during the aforementioned litigation process, then judgements will be filed and enforced, alongside a disclaimer maintaining that collection methods will henceforth be assertive. This means real estate liens, levies on their bank accounts, commission of collection agents, and legally mandated assessments of their economic circumstances.

Collections and Bankruptcy

If the debtor files for bankruptcy at any point during the process or afterwards as a result of collection efforts, then legal representation continues during the bankruptcy litigation. All necessary documentation, such as liens and proofs of claims, will be appropriately filed. Furthermore, if actions are taken on behalf of the debtor to reclaim any financial or real assets forfeited during the collections and bankruptcy procedures, an attorney will persist representation until defense against such claims are rendered void.

Collections and Construction

The following types of claims may be necessary in the event of collections related to construction:

Furthermore, attorney representation is highly advised in pursuit of debts from construction industry cases. All persons potentially responsible for the outstanding payments will be addressed and thusly billed when relevant. Such parties include but are not limited to:

  • Lenders of construction funds
  • Real estate proprietors
  • General contractors

Hire Nashville Business Attorneys

At Turner Law Offices, P.C., our team of attorneys has years of experience in both debt collection and bankruptcy litigation resulting from such situations. We know the most efficient avenues of pursuing collections in a variety of circumstances, and are equipped to recover outstanding debts as swiftly as possible. Call today or go online to set up your Free Initial Consultation, and meet with a skilled lawyer who is ready and waiting to do whatever it takes to recover financial obligations in a timely manner.

(615) 259-2660

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