I have been engaged in debt collection litigation for more than 40 years. I doubt there are any debtor strategies I have not seen before. The objective in debt collection litigation is to proceed as vigorously as possible to keep the pressure on the debtor. Sometimes the debtor will try to settle the case if the pressure is unrelenting, or if I as the creditor’s attorney present a risk to the potential liability of family members, such as when the debtor has made fraudulent transfers to his/her family. My main advice here: keep copies of checks paid by the debtor to your company, and do not wait more than three months after the debt remains unpaid to refer the claim to our office to collect.
Debt collection litigation makes up 70% of my practice, and involves commercial clients suing for balances due or professionals seeking to recover for services rendered. If a business does not pay for goods received, the objective becomes to sue and collect as quickly as possible. The sooner one gets a judgment against a functioning business, the sooner the money can be collected. If a debt appears uncollectible by a business, I advise the client to contact me as soon as possible, before their debtor goes out of business. When economic conditions are bad, businesses go under, and if you want to collect successfully, it’s important to act quickly. A lawyer may be able to issue subpoenas for monthly bank statements, checks, customer lists, or other information that can help you to collect the money that you are due.