Category: Debt Collection Strategies

At the Stevens-Lloyd Group, in addition to utilizing our unique blend of incorporating phone calls, strong written communication skills and litigation, we also utilize more advanced debt collection techniques. These include Writs of Execution, Bank levies, and Wage garnishments. These advanced debt recovery techniques will assure that your money is recovered in the most expeditious fashion.

What is a Writ of Execution

A writ of execution (otherwise called an execution) is a court order used to put a judgment of ownership into power after it’s obtained by the offense from a higher court. When issuing a writ of execution, a court will commonly assign a sheriff or other comparative authority to claim property. Such property will often then be sold by the sheriff and the funds returned to the creditor in fulfillment of the judgment. The sheriff can essentially put a bank garnishment into effect from the debtor company’s bank or seize property. If the judgment account holder possesses genuine property, the sheriff can record the execution to “solidify” the title until the point that the execution is fulfilled.

By and large, a Writ of Execution is an effective means for creditors to recover monies against professional debtors who deliberately avoid paying their bills. When these debtor companies ignore judgments filed against them, creditors can consequently utilize writs of execution to enforce and uphold judgments.

In the United States, not all assets are liable to execution, however. For instance, Social Security income is excluded from a Writ of Execution. Numerous states also specify that an Individual Retirement Account (IRA) cannot be affected by this procedure and that claims against unemployed debtors are also excluded from Writs of Execution.

Obtaining a Writ of Execution

Before you can impose on a debtor’s wages or other property, court authorized judgment is required to file for a Writ of Execution, Writ of Garnishment, Writ of Connection, or comparably titled report. In many states, you can obtain writs in a small claims court for totals less than $5,000—for a comparatively small expense.

Once the court issues your writ, your debt collection attorney will transfer it to the sheriff, marshal, or constable in the area where the debtor operates. We recommend that your commercial collection attorney file with the court as soon as possible in order to effectively seize the debtor’s assets. Additionally, the creditor is required to provide money for court costs, bank garnishments, and other legal expenses. These expenses typically cost an average of $500.

We also recommend that your debt attorney not delay in filing the writ. A writ of execution will be terminated if it isn’t executed by the sheriff, marshal, or constable inside a specific number of days. If time runs out, you’ll need to obtain another writ of execution. Wait to obtain a Writ of Execution until your debt collection attorney has determined property, wages or other assets which can be taken.

In general, here are the parameters for obtaining Writs of Execution:

Special Civil Part court officer – for cases under the watchful eye of the Small Claims Court (debate is under $3,000), Special Civil Part (contention is under $15,000), or Civil Part (discussion is more than $15,000) in accordance with the Judge’s request.
The writ of execution can put a demand on the debtor’s bank accounts with the exception of exempted money, personal property, and motor vehicles—if the vehicle is enlisted in the judgment-account holder’s name.

Bank Levies

If your debt collection attorney obtains a court judgment against the debtor, he or she will have the authority to approach the court for a bank levy. A bank levy is the procedure where the plaintiff of the judgment seizes the money from the debtor’s bank balance to satisfy a court-ordered debt. When a levy is issued, the debtor’s bank account is encumbered, which means they can’t access the money in that account until the debt has been repaid.

If your collection team knows where the debtor company or individual does their banking, the commercial collection attorney can arrange a sheriff, marshal, or constable to take the debtor’s assets and obtain whatever funds are available, which are also subject to exemptions. This procedure typically only works once since the indebted person is likely to move his or her assets from the bank account you garnished.

Recovering Debt from a Judgment Debtor

 

You’ve won your case, and the other party (the debtor) owes you money. Great! Nonetheless, there’s still much work to do. Presently, you must move forward to collect. If you know where the judgment indebted person works, you’re on the right track.

What are Wage Garnishments?

Wage garnishment is a legitimate process through which a portion of a U.S. taxpayer’s income is required to be withheld for the payment of a debt. Unlike other creditors, however, the IRS can force a garnishment without endorsement from the courts.

In many states, you’re qualified to claim 25% of a person’s net wages to fulfill your debt. However, If the debtor earns low wages, you’ll subsequently recover proportionally less money. Moreover, wage garnishments are not permitted in a few states such as Texas and Florida. Your commercial collection attorney can provide you with this information.

Recording a genuine property lien

Another advanced debt recovery technique is to file a lien on the debtor’s property which they possess. In certain states, your commercial collection attorney can file a lien by recording the judgment in the area where the property is located. At that point the title of the property will be seized by your lien. In order to clear their title of the lien, the debtor must satisfy the lien. Bear in mind that a portion of the debtor’s home property may be absolved from collection.

Other property

A Keeper of the Till, effected by a sheriff, marshal, or constable’s office, can recover monies directly from a business via their account receivables. See our article Debt Collection Tactics Used by Professional Debt Collectors.

Assets of the debtor company, such as furniture and vehicles can also be seized in order to fulfill a debt. Essentially, the main individual properties (rather than land) worth pursuing are assets of value that are worth more than the state’s exception sum. You can attach property or land if it has enough value to satisfy the home loan and pay off any estate exceptions.

The Stevens-Lloyd Group’s network of expert debt collection attorneys can determine exactly which assets are accessible or forbidden when collecting a debt. As part of their asset and liability investigation process, our collection attorneys determine how much a judgment account holder can attach by researching the state’s exemption laws where the debtor is located.

Renewing the Judgment

A money judgment is normally good for five to seven years depending on state laws. If you require an extension, a judgment may be renewed before it terminates. You’ll have to record the new judgment in accordance with the debtor’s state laws to effectuate lien rights.

By utilizing these advanced debt collection techniques, you will greatly increase the odds that your money will be recovered sooner and at less cost to you. As experts in our field, be sure to contact the specialized agents at The Stevens-Lloyd Group when it comes time to use these advanced techniques and recover your money.

Are you uncertain as to whether your debtor will pay your unpaid debt? Or did you run out of ways to effect debt recovery? It’s an extremely cumbersome task to recover past due receivables. At the Stevens-Lloyd Group we utilize a unique blend which incorporates phone calls, strong written communication skills and litigation. When traditional collection methods fail, we and our debt collection attorneys deploy advanced collection techniques. Below are some of the methods we utilize to collect outstanding monies. These debt recovery techniques will help you recover your money immediately.

Making Phone Calls

Ask for payment in full. If the debtor refuses to pay the entire debt, determine what the problem is. The debtor’s priorities may be other creditors to be paid or their cash flow may be poor. Make sure your outstanding receivables are his or her priority.
While making calls keep the following things in mind:

• Call the debtor at the right time of day. Monitor their working routine.
• While on the call document the conversation. Don’t forget the important points verbalized by the debtor.
• Don’t leave messages
• Communicate to the debtor company clearly and concisely. Don’t be vague.

Written Communication

Strong written communication when it pertains to debt collection is essential. Deploy invoices and firm and professionally written demand letters when asking for immediate payment. The goal is to get the debtor’s attention and to avoid any misunderstandings. You want to be paid-in-full promptly. Make it clear to the debtor company as to when the bill needs to be paid, any interest or finance charges applicable, and in some cases the consequences for not paying.

Litigation

If all else fails, taking strong legal action against the debtor in case of non-payment may be the best course of action. We recommend that litigation be taken only if your unpaid bill is uncontested. If the debtor company vehemently contests the bill, it can be a no-win situation. Subsequently this process will involve the presentation of legal documents and court summoning of both parties. Even though legal action is initiated, negotiation and resolution are still possible which in many cases is the best path towards debt recovery.

The Stevens-Lloyd Group utilizes a worldwide network of expert debt collection attorneys who work closely with our firm to recover more than 75% of the bad debt which comes across our desk. Read our e-book 2018 List of Collection Attorneys, https://www.stevenslloydgroup.com/wordpress/

Pre-Judgment Writ of Attachment

A Pre-judgment writ of attachments can be effective in certain debt recovery situations. This is where one of our expert debt collections attorneys’ files this action and effectively freezes all the debtor’s assets once the lawsuit is filed. Pre-judgment writs of attachments would apply to undisputed commercial cases of at least $50,000.00 to $100,000.00. The plaintiff usually would file a surety bond which states that one party will pay if that party loses the case. The plaintiff would post a bond of $200.00 to $500.00 and the risk is if they lose at trial the other side can file for damages.

The Pre-Judgment Writ of Attachment is effectuated after the lawsuit has been filed. The advantage of this advanced debt collection technique is that the normal legal process may be prolonged for several years which would allow the debtor to liquidate all his assets or no assets are left to pay off the creditors. The Pre-Judgment Writ of Attachment prevents this from happening.

Suspending Contractor Licenses

If a contractor is unable or unwilling to pay the creditor, one of our skilled debt collection attorneys can file a Suspension of Contractor License action with the state the debtor company operates in. This allows our client the authority to suspend the debtor’s license until the unpaid debt is resolved. This gives our clients the upper hand in collecting the debt. For instance, in the state of California, If the contractor fails to resolve their debt with the creditor a judgment can become permanent with the Contractor’s State Licensing Board. In such cases, all the contractors’ licenses will be suspended including new company licenses.

Filing Involuntary Bankruptcy Petition

Without the consent of the company, several creditors have the authority to force the debtor company into an involuntary bankruptcy Chapter 7. This can only be done under a given set of circumstances that has to be met. The requirements of the involuntary bankruptcy petition are as follows:

• There must be a required number of creditors
•  The debtor company is not paying their debts
•  A specific chapter must be allocated

Filing for Involuntary Bankruptcy can be an effective means for recovering debt especially if large sums of money are involved.
The usual debt recovery protocol of telephone calls, written demands and aggressive legal action is effective more than 95% of the time. But on occasion, creativity and advanced knowledge of the legal system allows the savvy creditor, debt collector or debt collection attorney more avenues and options to recover monies otherwise left on the table. When that time comes, trust the Stevens-Lloyd Group to help you collect.

If you currently have a debtor that is making excuses for non-payment or outright refusing to pay, then you might want to consider soliciting the services of a professional debt collection agency. In the past few years, there has been a rise in the number of debtors who refusing to pay monies owed. Due to this, debt collection agencies are quickly evolving. Such agencies are serving a major role in collecting debt from the defaulters.

A debt collection agency can use different tactics and strategies in order to collect the payment from the debtors. Advanced business debt collection strategies and tools used by agencies place a different type of pressure on debtors to incentivize paying the outstanding debt. One of the most creative tactics the Stevens Lloyd Group employed was grounding an asset of a debtor in the United States until payment was made resulting in the collection of $146,588.32. Here is an excerpt from our Air Philippines case study :

“Through our investigation, we come to know that it owned an aircraft which was outright on the ground in Los Angeles, CA. The Martin Goldman firm based out of southern California was retained by the Stevens-Lloyd Group. A lien against the Air Philippines was placed by Mr. Goldman. He seized the plane which was halted on the ground at LAX. Leaving no choice to Air Philippines, it had to pay our attorneys $146,588.32 to free the aircraft. Through the use of advanced debt recovery practices and their experience in the Aviation Industry, The Stevens-Lloyd Group recovered the whole amount which the debtor owed to GM Air $146,588.32. Their team achieved this within four months of intense collection activity.”

Debt Collectors Strategies:

 

Collection Agency Communication

A debt collection agency will first contact the debtors anytime. They may also send emails to them. If the debtors are not responding to emails or calls then they find another solution. To track them down, they may contact their neighbors, friends or relatives in order to contact them.

Debt Service Legal Action

If communication does not work or debtors are responding, then professional debt service providers will take legal action against them to collect the debt. They can send liens, garnishments, and lawsuits after getting a court order against the debt defaulters. Garnishment is a legal procedure in which the creditor can freeze the bank accounts of the debtors. Debt collection agency can also take a lien against the property of the debtor.

Debt Collection Expiration

Debt collection does not have any time frame rather it can be collected anytime as long as the debt collection agencies attempt to collect. If the time given to debtors to pay their debt is over, then a collection agency can take legal action. Debt collectors can also report negative information on the credit report of debtors which may affect their credit scores.

In this hectic life, debtors create a lot of financial stress on a business. If you have failed at all your debt recovery attempts and are out of debt recovery solutions, consider hiring need a professional. The Stevens-Lloyd Group is known for our advanced debt collection techniques, we have very strong relationships with collection attorneys and are able to handle any size of outstanding debt. We take the stress out of debt collection!

As a creditor, it is your right to get your money back which you have given to clients. You have the power to shut down their business if they fail or ignore to pay you. However, in case, your all efforts to collect the debt get unsuccessful, you can take the advantage of debt collection services. There are many ways to recover debts from clients who refuse to pay.

Whether it’s a new client or an old one, you have the right and obligation to collect the amount you are owed. In case, all your attempts have failed to recover a debt, these are some business debt collection strategies may help you to recuperate your cash.

Keep Calm
Staying calm is necessary when it comes to debt recovery. Of course, if clients do not pay you or refuse to pay the money, it is natural that you may get infuriated. However, it is better to keep calm. Getting angry and using abusive language against them is not the right solution. The angrier you get on them, the less likely you recover your debt. Your wrath will be felt by the clients. They will take it personally and keep grudges against you which make them non-cooperating.

Your mental state affects the way you handle the debtors and the way they respond to you. For instance, if you are calling debt defaulters for the first time to remind them for debt recovery, put a smile on your face and talks to him politely. In case, your mood is not good, take a few minutes to calm down yourself before talking to them. Depending on your tone, they will respond accordingly. The more polite to talk to them, you are like to get a more positive response from them.

Know About Your Rights

If you do not have any experience of business debt collection then you are possibly searching your way through the procedure of payments collection. So, it is required for you to know your legal rights. Once you understand the legal actions which you can or cannot take, you will become more confident while interacting with your clients. For instance, you can take a legal step to know about the social security number of someone in order to move things along.

Keep Everything in Records

In every small or large business, it is important to keep everything documented. When you have all documentation with you, it will help you to fight a legal battle in the court against the debt defaulters. Even if you talk to clients over the phone regarding anything related to debt. Record the call or take notes. In case, if you send debt related emails to clients then copy or certify every letter and save the emails. Keep the record of visits you make to the clients home or office.

Do not Harass

Many people think that harassing people to recover the debt is one of the best debt recovery solutions. However, they are wrong. Harassing includes screaming or abusing clients and calling them every day. It will make your reputation bad in the market. Instead of doing all these things, your persistence is more important. Calling your clients every 7-10 days and providing them with various options to pay your money makes a better sense to recover the debt from them.

Hire a Debt Collection Agency

There are some stubborn clients who ignore to pay your amount. In case, you have a lot of debt amount to recover and are unable to recover the amount, then hiring a debt collection agency will worth your time. Doing this will save your time and also provide you with better results. Professional debt collectors also help to keep you out of legal trouble.
Debt recovery is not a fun. Sometimes, you will feel like you are too harsh towards your clients or other times you will feel like that you are being pushed over. Following the above-mentioned tips will help you to have some success when it comes to collect the debt.

Unlike consumer debts, commercial debt balances tend to be considerably higher, often times leaving businesses in a precarious position not having access to much-needed capital. When internal efforts to collect on a commercial debt prove unsuccessful, one of the most important steps a business owner can take is to contact a commercial collections agency.

Helping businesses recover past receivables that are long overdue is what a commercial collections agency excels at. Most businesses are unaware of what procedures to take when dealing with outstanding unpaid accounts. A commercial collections agency specializes in those procedures having policies, practices, and systems in place for commercial collections and large debt claims

Considerably more proficient in the debt collection process, a Commercial Agencies employ highly trained, adaptable, and skilled debt collectors to handle the commercial collections for their clients. Agencies are required to do due diligence before contacting the debtor including background checks, corporate structures, skip tracing through non-public database searches, payment histories, and other relevant information and inquiries.

All Local, State, and Federal Regulations must be followed by a Commercial Collections Agency. To do so, many agencies work with local attorneys to ensure their adherence to all regulations and requirements. Continual education is a must for a commercial collections agency to stay informed of any and all new laws and/or changes within the industry; yet another reason businesses should turn to commercial collections services for help in recovering outstanding receivables.

However, though it goes without saying, choosing a reputable and experienced commercial collections agency is key to the success of a business owner when it comes to recovering any unpaid accounts and outstanding debts.

3 Things to look for in a commercial collections agency:

Without using the above criteria when choosing a commercial collections agency to recover your outstanding receivables, business owners could find themselves no better off than before

Debt collection efforts can be stressful. One of the biggest mistakes individuals make when collecting on outstanding debts is not communicating properly; none more so than while attempting to collect on a debt via the phone. Deploying the best practices in accordance with national, state and local laws is essential to avoiding debt collection missteps and having successful debt collection efforts.

Successful Debt Collection Tips:

Effective Phone Conversations

Though generally seen as the most efficient and effective method for successful debt collection, there needs to be a level of competence and skill to your methods. In other words, Professionalism is key.

Most people are familiar with the horror stories of debt collection efforts by less-than-scrupulous collection efforts. One thing that is common with individuals engaging in these tactics is a lack of professionalism. Here are a few tips you can use ion yourtelephone decorum arsenal to help you in your successful debt collection efforts:

Recording your conversation

If you plan on recording the conversation, be sure to get the other party’s permission before you do so. You can check your state’s requirements for recording conversations at the following website https://www.rcfp.org/reporters-recording-guide/state-state-guide

Leaving messages.

It is a good practice to assume that any messages left for the debtor will be heard by other parties. Be careful not to disclose any personal information related to the debt to anyone other than the debtor.

On the other hand, if this is a business-related debt, full details regarding the debt can be left on any phone number related to the business or any personal number belonging to the directly related party.

Effective communication is one of many often difficult hurdles you can encounter when attempting your debt collection efforts. Employing a commercial collection agency like Stevens-Lloyd Group, Inc to handle things can help eliminate the learning curve when it comes to successful debt collection efforts.

Give us a call today – Toll-Free: (888) 882-2282

Are your debt collection strategies like most business owners or are you cashing in on slow paying customers by implementing Invoice finance charges and interest?
Debt Collection Strategies: Interest & Finance Charges

Imagine for a moment applying for a loan at a bank. You sit down with the loan officer and somehow manage to obtain a loan for $5,000 at 0% interest. Sounds a bit far-fetched and a little foolish on the part of the bank, doesn’t it? After all, why would a bank loan you money without interest? There’s nothing in it for them; there’s no financial gain for them in taking the risk

However, that’s exactly the kind of “foolishness” you and your business are engaged in with your debt collection strategies if you are not charging interest on your delinquent accounts. In fact, it’s even more so. After all, banks don’t really need the money, however, your business does.

Most businesses are in constant need of capital. In such cases, it is common for a business owner to borrow money from some sort of financial institution, be it a bank, private lender or other business capital. Regardless of the source of the loan, the business will have to pay a finance charge and interest on the money that they borrowed. And yet, no finance charges or interest payments exist in their debt collection strategies and invoicing system when attempting to collect the monies they are owed.

You may find it surprising that when implementing interest or finance charges into your outstanding debts, not only will payment be made faster, you will often receive the interest payment as well. It is a well-known fact that most companies will pay interest bearing invoices first and will relegate non-interest bearing invoices to a later date, often waiting until collection procedures have started. Most businesses use a revolving line of credit. By not paying the outstanding bill, your customer is able to earn, you guessed it, interest on that money

A question you need to ask is how important your services or products are to the vendor. If you are non-essential to the customer, you may find your invoices overlooked in favor of more ͞essential͟ suppliers. Having implemented finance charges into your invoices gives you leverage over the other vendors who do not. Remember, when sending an invoice to a customer, you are competing for their next available accounts payable dollar. It is how well you compete for that dollar that determines your success.

Another factor to consider, by having a finance charge in place, you gain leverage over your customers by having the ability to waive the finance charge in lieu of timely payments.

By applying interest/finance charges to your accounts payable and debt collection strategies, you will help speed up the payment of your invoices by training your customers to either pay according to your terms or to take advantage of your offer to extend your accounts receivables and pay the interest cost. What you will find is that customers will often prefer to extend the collection period paying the interest instead.

Think of debt collection strategies as a chess game: you need to outthink your opponent and stay at least one move ahead of them.