McHughs

What is the difference between Commercial and Consumer Debt Collection?

Commercial Collections involve retrieving past-due debts and receivables owed to a business by another business or an individual with a business related debt. In contrast, consumer collections involve debts owed by individuals who incurred the debt for personal, family, or household purposes.

Why Do I Need a Collections Attorney as Opposed to a Collections Agency?

In Arkansas, business owners are at a disadvantage during commercial collections. The Arkansas statute of limitations permits only two years to collect on medical debts, three years to collect on verbal contracts, and five years to collect on written contracts. Judgments are good for 10 years after being passed. Upon expiration, you will no longer be able to collect on the debt. A collections agency contacts a debtor through a series of dunning letters and phone calls. They run a high-volume business which means that their approach is handled the same way every time regardless of the debt or d

What does debt collection look like?

Once a claim is accepted for collections, the first step is investigation – into the debtor and its assets and liabilities. This can be accomplished through public records and private data sources available to us, including subscription only databases to which we belong. Depending on the results of the investigation, we may either send a final letter or call, or immediately file suit – especially if previous instances of debt default come to light. Next, litigation is filed to collect past-due receivables with the goal of obtaining a judgment or settlement. Most commercial collections cases ar