Many businesses make deals on credit. In the world of accounting and finance, revenue is generally recorded when a product has been delivered or when a service has been rendered. When the money is received, the revenue is then realized. Unfortunately, business owners need to prepare for the worst as well. If you are delivering orders in large quantities to a client on a credit basis, you will have to make a provision for bad debts. What if the client can’t pay you the money? Or, what if the company goes into liquidation? You will have to bear the brunt of the loss. However, the law gives you a legal recourse that you can follow to acquire the amount owed to you.
File a Case
There are many lawyers through which you can process debt collections in St. Charles, MO. Many clients might choose not to pay even if they do have the money. This amounts to fraud and is a criminal offense. You can contact an attorney to file a lawsuit against the client. Law firms that specialize in debt collections, such as Vandillenfloodlaw.com, have plenty of experience in dealing with recovery lawsuits.
How to Proceed
When you contact the lawyer, they will send a legal notice to the company that isn’t paying up. They might even have to subpoena the company’s financial records in order to find out more about the company’s financial condition. Once all the information comes to light, your debt collections lawyer will set up a repayment plan for paying off the outstanding debt. If the amount if smaller, your lawyer will request the court to pass an order that legally obligates the company to pay the whole amount in one disbursement. However, in most cases, a repayment plan must be drawn up for clearing the outstanding debt. View website for more details.