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Any options other than a collection agency for business debt?
I own a small business in Massachusetts and have extended credit to another small business also in Massachusetts. The debtor has pretty much told me that business is slow and he is unsure when he will be able to pay the debt. He said it is possible it would go into next year! Other than hiring a collection agency and losing 30% are there any other options I have to collect the monies owed? I asked that he return the product that was purchased but he has already sold it (and collected his money for it is my guess!)
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The debt in question is approximately $5,500.00. I was hoping for some form of legal action I can take myself without hiring an attorney. This is not to say I discount the value an experience law provider could bring to the situation, but I have already lost hundreds of dollars on this already. Attorney answers (3)
Reputation Level 15
Answered over 2 years ago.
Family Law Attorney in Boston, MA.
You can hire a lawyer to demand payment of the debt and file suit if no payment is made. Many attorneys will work on a contingent basis for some percentage of the debt, usually 25%-35%.
If you don't like that arrangement, most attorneys would be happy to collect the debt on an hourly-fee basis. Feel free to give my office a call if you would like to take the next step in collection.
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Reputation Level 13
Answered over 2 years ago.
Employment / Labor Attorney in Boston, MA.
Perhaps he is willing to sign an agreement for a payment plan, that charges interest, and is secured by property, preferably a mortgage on real estate. How much is the debt?
Reputation Level 14
Answered over 2 years ago.
Debt Collection Attorney in Stoneham, MA.
Rather than a collection agency, an attorney would also be of assistance. If the collection agency is not successful, you would likely need an attorney to proceed further with legal action. If you are not a sole proprietor, rather a LLC, corporation, or some other entity, an attorney will be needed to take legal action as you cannot represent the business, unless you are an attorney.
While you may feel that you are giving up on some of the money owed to you, you are also gaining a benefit from involving legal counsel. If the business is not doing well, steps should be taken to protect your business's interests. Do the terms of the sale include a provision for interest or attorneys' fees? If not, this may be the time to look at changing your terms for new sales to protect your self in the future. There may also be other claims against the company and its owners/officers that should be looked into. Feel free to contact me at no cost for an initial 30 minute consultation. DISCLAIMER: This answer is provided in response to a "hypothetical" question and provided for general, informational purposes and does not create an attorney/client relationship. The information presented is not legal advice and may change based additional information and research. It is recommended that you speak to an attorney to discuss your specific legal issues. Related Questions1 Attorney answers: 
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