The Statute of Limitations on Debt Collection
What happens to those outstanding debts owed to your company? Are they lost forever? Often companies simply write off debt collection, without ever thinking about their debt recovery options. What is your company’s plan of action?
Let us first understand what the Statute of Limitations (SOL) on past due bills actually means. The SOL is the point in time when the debt collector or creditor files a lawsuit against the debtor in question. Each state is varies in regards to the window of time when a creditor or debt collector can sue for the collection of bad debt.
As a general rule of thumb, the Statute of Limitations (SOL) contends that a creditor or debt collector cannot pursue debt recovery after a six-year period from when the debt was written off or the date of last action on the credit report. If the SOL phase has ended, it does not necessarily mean a lawsuit cannot or will not be filed; it does, however, provide an easy path for dismissal of the suit.
Does your company have a well-planned strategy to deal with delinquent accounts? How can your company recoup bad debt? Employing the use of experts who are familiar with the SOL is a first step in your path to successful debt recovery. Hiring a professional collection agency will save you time, resources and recover what you are owed.
A collection agency will go to bat for you, freeing up your time to focus on the day-to-day operations of your business. A collection agency, often referred to as third party agency, strongly seeks to undertake the daunting task of debt recovery.
There are a variety of reasons people do not pay their bills, including financial hardships resulting from unexpected unemployment, illness or accidents. A collection agency or debt collector understands the numerous reasons for failure to pay and handles each case accordingly.
Think about the cost of uncollected, delinquent accounts and you will quickly realize that a collection agency is your best option for recouping that money. A collection agency remains in compliance with the law while striving to get your money paid back. Undoubtedly, by hiring a collection agency to handle your debt recovery needs, an increase in your revenues will quickly be realized.
To get started today, call our toll free 1-877-680-6064 to speak with an associate or fill out the form above and we will contact you within 24 hours.