When a business’s customer fails to pay his or her debts, the business, as a creditor, has several available remedies to help collect the money from the customer, the debtor.
“Self-Help” Remedies and Collection Agencies: First, the creditor may simply contact the debtor directly and demand payment. If these attempts fail, the creditor may transfer the debtor’s account to another business whose focus is debt collection.
Secured Transactions: Secured transactions are sale or loan transactions in which the debtor gives the creditor a claim to the debtor’s property in order to ensure payment of the debt.
Court-Based Remedies: Sometimes, a creditor will initiate court proceedings in order to collect on a debt. These include:
Lawsuits and Liens:
Collecting unpaid debts is essential to the success of any business. Texas attorney Andrew Weisblatt is a skilled Houston B2B business collections attorney who understands how to effectively collect from businesses that may be reluctant or unable to pay their outstanding financial obligations. To schedule an appointment with Mr. Weisblatt, call our Houston office today at 713-666-1981.