Need to collect a debt?

You are not alone. Approximately 30 million Americans have a debt in collection.

If you have loaned someone or a business money in good faith but find that you are having trouble getting them to repay the debt, you may be wondering what you can do to collect what is owed to you.

The good news is that there are several ways you can take action to collect. Here are the steps you can use for collecting debt in New Jersey.

1. Always Be Polite

When someone owes you and does not want to pay it can become frustrating. No matter how angry you get, do not call anyone any derogatory names and do not harass them.

This can work against you should the matter end up in court. If you call to ask about your money, resist the urge to become angry and do not call more than once a day.

2. Put Everything in Writing

Hopefully, you have been doing this since day one. You should at least have a promissory note stating how much was loaned and the date it should be paid. When you want to collect a debt it is not just about calling you should also be writing and asking them to pay what they owe.

The letters that you write are known as demand letters. You should save a copy for each of these that you send. They will come in handy if you have to use a collections agency or go to court.

3. Hire Someone to Collect Your Debt

Sometimes it can be too much of a hassle to collect the debt yourself. In cases like these, you can hire a collections agency. You should be aware though that collections agency will often ask for some of the money that is collected.

However, when you feel that there is almost no chance of you collecting on your own it is better to get at least some of your money back.

4. File a lawsuit

Sometimes the only option is to file a lawsuit when you are owed a large sum of money. However, if you choose this option you should be aware that you will have to pay courts costs and legal fees.

When filing a lawsuit you must do so in a court that has jurisdiction over the area in which the money was loaned.

You are going to need evidence to win in court so gather any contracts or promissory notes you may have. If there are witnesses you will want to have them readily available as well.

Final Thoughts on Collecting Debt

Collecting debt is never easy especially when those who should pay you don’t want to or are unable to. However, as you have seen there are many options to collect your money.

You can try one or a combination of them to collect what is owed to you. The key is to keep calm and not give up because often you will get back some or all of your money.

If you would like more information on how to collect a debt, please contact us.