Recovering unpaid debts is a challenging process that requires a strategic approach. Many businesses struggle to collect overdue payments, leading to cash flow issues and financial instability. At The Stevens-Lloyd Group, Inc., we specialize in advanced debt recover techniques that ensure maximum results. Our unique blend of phone calls, written communication, and legal actions helps recover outstanding debts efficiently. Below, we outline ten advanced collection strategies that will help you recover money quickly and professionally.
1. Effective Phone Communication
Making collection calls is one of the most powerful tools in debt recovery. However, it must be done strategically to ensure the best results.
- Call at the right time: Monitor the debtor’s working hours and choose a time when they are most likely available.
- Document the conversation: Keep records of important points discussed for future reference.
- Avoid leaving messages: Speaking directly to the debtor ensures better engagement.
- Be clear and concise: Communicate your expectations professionally and avoid vague language.
2. Strong Written Communication
Sending demand letters and professional invoices is critical to getting the debtor’s attention. These documents must clearly outline:
- The total amount due
- Due dates and late payment penalties
- Consequences of non-payment
A well-written letter can serve as evidence in legal proceedings and encourages faster payment.
3. Litigation as a Last Resort
When traditional debt collection methods fail, pursuing legal action may be necessary. Litigation should be considered only if:
- The debt is undisputed
- The debtor has assets available to settle the claim
- All prior attempts at collection have been exhausted
At The Stevens-Lloyd Group, we work closely with expert debt collection attorneys to ensure a high success rate in litigation cases.
4. Pre-Judgment Writ of Attachment
A pre-judgment writ of attachment allows creditors to freeze a debtor’s assets before a court judgment is issued. This technique applies to commercial debts of at least $50,000 to $100,000. It ensures that the debtor does not liquidate assets before paying the owed amount.
5. Suspending Contractor Licenses
For contractors who fail to pay debts, filing for a Suspension of Contractor License can be an effective method. In many states, if a contractor does not settle the debt, their license may be revoked. This can pressure them into paying their outstanding balances promptly.
6. Filing an Involuntary Bankruptcy Petition
If a debtor is unwilling to pay, creditors may force them into involuntary bankruptcy under Chapter 7. To qualify, creditors must prove that:
- The debtor has multiple unpaid creditors
- They are not making payments despite available funds
- The debt meets the required legal threshold
This method is particularly useful for recovering large unpaid amounts from businesses.
7. Recover Debt from Writ of Execution
A writ of execution is a court order that allows creditors to seize a debtor’s assets, including bank accounts, real estate, and vehicles. This method is especially effective when debtors ignore legal judgments against them.
- The court assigns a sheriff or legal authority to execute the order.
- Assets are sold, and funds are used to pay the creditor.
- Certain funds, such as Social Security or retirement accounts, may be exempt.
8. Bank Levies to Recover Debt
A bank levy allows creditors to seize funds directly from a debtor’s bank account. Once issued, the debtor is unable to access their account until the outstanding amount is settled.
Steps to enforce a bank levy:
- Obtain a court judgment confirming the debt
- Identify the debtor’s bank details
- Work with a collection attorney to file for a levy
9. Recover Debt in Wage Garnishment
If a debtor refuses to pay, creditors may obtain a wage garnishment order, which allows them to deduct payments directly from the debtor’s salary. This legal process ensures a consistent payment stream until the debt is fully recovered.
- Requires a court order
- Employer deducts a portion of wages each pay period
- Some states have exemptions based on income level
10. Leveraging Expert Debt Collection Attorneys
Hiring experienced collection attorneys significantly increases the chances of successful debt recovery. At The Stevens-Lloyd Group, our network of global debt recovery experts helps clients collect more than 75% of bad debts.
Recovering outstanding debts requires experience, strategy, and persistence. At The Stevens-Lloyd Group, Inc., we provide customized debt recovery solutions tailored to your business needs. Let us help you recover your money quickly and professionally.
