Business owners’ options for collecting debts
Posted on Monday, October 19th, 2009 at 3:36 am
When customers fail to repay debts, business owners have a number of options to collect this debt. Some of these options can be handled outside of court while others require a judge’s involvement.
Business owners who regularly offer credit to customers typically apply two strategies before going to court. One, they will contact the customers and demand debt repayments. If the customer refuses, business owners can hand the collection over to a debt collection agency.
If the two non-court strategies fail, then the business owner can initiate a reply-in or attachment action through the court. If these options do not work, then business owners typically will file a lawsuit, which could be expensive for both the creditor and debtor.
If you are a business owner and are seeking legal remedies for collecting debts, contact the Iowa business lawyers of LaMarca Law Group, P.C., at (877) 327-2600.