If you are a business owner who has not been paid after providing a service or commodity to a customer, your cash flow may be suffering as a result, and you will want to gain back the money that you are owed. As a creditor, you have several options available to you.
The possible remedies for gaining back unpaid debts range from informal communication between your debtor, to more serious court proceedings. It’s likely that you will want to start by trying to make an honest attempt to gain payment before involving the law.
The first steps after a missed payment
You may want to attempt to contact your debtor by sending them a written mail asking for payment. Their lack of payment could simply be an honest mistake, and you may be successful in solving the issue in this way. You could also send them a mail outlining the legal action that you intend to make if the debt goes unpaid. It is important that you adhere to the regulations outlines by the Fair Debt Collection Practices Act (FDCPA) when doing this.
If written communication is not successful in gaining payment, you may want to consider court-based remedies. The court will consider all aspects of the case, and they may allow the creditor to seize the debtor’s property in certain circumstances to compensate for the debt. If the debtor owes significant debts to many creditors, ýy proceedings may commence.
If you are struggling to find the best solution to your unpaid debts, you should start by understanding the full extent of your rights as a creditor.