It’s an uncomfortable position, when someone owes you money. Not only is the relationship likely ruined, but it even affects the relationships around the person. I had a client whose entire family had a falling out when baby brother owed the oldest sister even $100. People chose sides and it got ugly! Money tends to have that effect on people; however, the good news is that it’s up to you whether you want to go to war or just let it go. Here are some tips and strategies that may help you make that decision:
1. Do your Research. When it comes to debt collection, it’s important to know WHO you are dealing with. The person who owes you money is called the Debtor. It is important to know who your debtor is. Evaluate them outside of the familiar relationship and determine if it is worth your time. Attempting to collect on a debt means you’ll be spending lots of time and even money to try to recover from this person. Does this person have any assets, like a house or bank accounts? Is this person habitually in and out of jobs? Are they constantly moving from one couch to another? If so, it may be difficult to keep an open dialogue with this person or company. If the debtor has no assets, it will be difficult to recover a judgment, even if that judgment comes quickly. Further, the judgment may be dischargeable in a bankruptcy. Who you are collecting from is as important as the funds that you are collecting.
2. Write it Off or Sell the Debt. Depending on the circumstances, you may be better off finding a quick way to resolve the matter that does not involve the debtor. You may want to seek a debt buying company. Debt buying companies purchase your debt at a discounted price and will pursue the debtor on its own. While these companies do not pay you dollar-for-dollar, it means that you no longer have to deal with the matter and can move on. Another option is to take a loss on your taxes for the loan. Taking a loss on your taxes will save you money on your taxes and may be a better option than chasing a Debtor for months, maybe even years. You will want to speak to a tax professional on whether or not you can do this.
3. Hire a Lawyer! A lawyer can be very effective in debt collection practices. An experienced attorney may be able to negotiate a monthly payment plan that will put money in your pocket. Or he or she may be able to pursue the matter in court, with all the resources of the court available to them.
For more advice, Call or Text SLF today at (312) 620-6499
After evaluating your debt, you may want to pursue it. And if you need an experienced attorney to retain, call The Shimotake Law Firm, LLC. And if you’re still not sure, SLF, LLC is more than happy to take your call and help you with a free evaluation of your prospect. We’re available at your earliest convenience. Reach us at (312) 620-6499 or text “HELP.”