When a debtor gives only excuses rather than payment, or refuses to accept calls or respond to letters, it is time to move forward with a more aggressive approach. You delivered the goods or services, and have the right to expect full payment. Whether your collections issue involves bounced checks, a failure to pay at all, or a recalcitrant customer who is holding onto their money and making you wait, the Firm will assist you to get the debt paid. If you want to get your accounts receivable under control, a Maryland collections attorney can take charge of the situation and get the debtor to fulfill their obligations. Our attorneys can pursue appropriate legal actions against the debtor, whether an individual or company, to recover the outstanding debt.
The Firm can handle all aspects of a wide variety of collection activities, from negotiating payment schedules and preparing appropriate agreements to filing legal action, allowing you to focus on other important matters while your outstanding receivables are handled professionally.
The statue of limitations for when a creditor can sue you for a debt is3 years for open accounts such as credit cards in the state of Maryland. However, the statute of limitations only covers the right of the creditor to sue you in court. It does not restrict the creditor from reporting the debt to the credit reporting agencies or contacting you to collect the debt.
Our engagement with your debtors is usually initiated by a letter, which sometimes generates a response. Some debtors simply will not pay unless they are sued. Where the debtor refuses to respond to your satisfaction and you approve, we resort to the courts –District Court for small cases, and Circuit Court or Federal District Court for larger cases.
The process of seeking a judgment through civil litigation must be undertaken carefully. In most cases, the statute of limitations requires that a lawsuit be filed within 3 years of the breach of contract, and it is important that the debt be well-documented. For small debts that are not disputed, it is sometimes possible to obtain judgment without appearing in court. For larger debts or in case of dispute, there will have to be a trial to present witnesses and evidence to a judge or jury.
After getting a judgment against the debtor, it is sometimes possible to collect by garnishing the bank account of the debtor or the debtor's wages. State and federal laws provide limits on how much of a debtor's wages may be used for wage garnishment. The debtor can also take defensive actions against the collection on the judgment, and could make a claim that certain assets should be exempt from garnishment. Or the debtor can file a petition in Bankruptcy. When the situation warrants it (such as when the debtor fraudulently contracted the obligation in question), we can represent the defrauded creditor in Bankruptcy court to block the debtor from having the debt discharged. It is imperative that every aspect of these legal actions is undertaken properly to maximize recovery. Our Firm is well acquainted with all aspects of collection and your situation will be in the hands of a legal professional that can work within the system and get results.
Contact us today for more information about debt collection.