Answers To Frequently Asked Questions Regarding Creditors’ Rights
Do I need to work with a creditors’ rights attorney before I lend money?
The short answer is no. You can certainly do this yourself. However, having a creditors’ rights attorney draft and review your lending documents can ensure that, should a debtor default, the collection process will go as smoothly as possible.
Do I need to work with a creditors’ rights attorney to collect a debt owed me?
No. You may attempt to resolve your issue or collect what is owed on your own. However, this takes time and energy away from running your business. When you work with an experienced creditors’ rights attorney, you will be given options and strategies that you may not have considered on your own. Usually, the process is expedited by enlisting the aid of an attorney. If you are not an individual then you must use an attorney to file a lawsuit.
Are all creditors’ rights attorneys the same?
Again, no. Each attorney has his or her own set of skills, network and experience. While there are attorneys whose single focus is collections, your business may benefit from working with an attorney who not only understands the collection and negotiation process, but one who also has proven business acumen. An attorney who understands both accounting and business can be an additional asset. These additional insights can work to minimize your risk and loss while supporting your business’s long-term financial goals and values.
How can an attorney help if there are other creditors fighting for collection?
An experienced commercial collections and creditors’ rights lawyer can facilitate negotiations in order for you to maximize your collection. He or she can ensure that your interests are aggressively pursued to the extent the law provides. I often tell clients that if a debtor is not paying you, then they are paying other debts. It is better to be in the front of the line than at the back. The longer you wait to start legal action to collect a debt, the harder it is to collect.
How do creditors’ right attorneys charge?
Every attorney is different. I charge an hourly rate. However, I do handle selected cases on a contingency fee basis. This rate can vary based on the complexity of your specific case. I offer a free initial consultation, so we can discuss your situation and how I can help.
What remedies can a creditors’ rights attorney take?
A creditors’ rights attorney can:
- File lawsuits and employ other legal collection techniques to collect commercial debts.
- Represent your interest in a bankruptcy proceeding.
- Pursue foreclosure of commercial real estate if the purchaser defaults on payments.
- Negotiate leases and payback plans.
- Strategize on your behalf to recover debts (including rents or lease money) owed.
Do all cases go to court?
Not necessarily. Many times, an agreement can be facilitated by your attorney. However, there are cases where court is unavoidable. In these instances, an experienced creditors’ rights attorney can ensure that your business is protected and your interests are robustly represented.
I’m Ready To Review The Facts Of Your Case
From consultation and negotiation to litigation, I provide experienced legal services for all of your commercial banking, finance and collection law concerns. Email me today for more information about how I can help you, or call 801-736-7222.