PA Business Debt Collection Strategies for Commercial Creditors

A PA creditor’s rights attorney can provide your business with practical guidance for preemptive debt collection solutions, including establishment of a universal payment policy and development of solid, written contracts that include creditor-friendly features such as a forum selection clause and a personal guaranty provision.

If you are already facing the problem of a late-paying or non-paying client, an experienced PA creditor’s rights attorney can take more aggressive action against the debtor, including drafting a formal demand letter, filing a lawsuit in the appropriate Pennsylvania court, obtaining a judgment and attaching the debtor’s assets, or negotiating a settlement agreement with the debtor.

A good creditor’s rights attorney is responsive, aggressive and experienced in commercial debt collections, with access to superior resources for locating a debtor’s assets, such as bank accounts. At The Martin Law Firm, our creditors’ rights debt collection attorneys represent commercial creditors for debt collection actions throughout Pennsylvania. Our attorneys have the skills and resources necessary to take swift and aggressive action against debtors located in Pennsylvania.

Implementing Sound Internal Processes for Business Debt Collection

For many business creditors, problems with debt collection can be addressed from within the business itself. Businesses should implement consistent internal processes for accounts receivable to improve successful debt collections. A business should designate a person to handle accounts receivable and institute a standard billing policy that includes invoicing clients regularly and following up with a late-paying client after 60 and 90 days.

When a Customer Won’t Pay

Statistically, if you have not received payment within 90 days of your original invoice, your customer is unlikely to pay you willingly. At this point, you may have made repeated attempts to contact your customer to no avail, and it may be time to consider pursuing more aggressive debt collection strategies with the assistance of an experienced PA creditor’s rights attorney.

Formal Demand Letter

You should always have an attorney draft a formal demand letter on your behalf for any Pennsylvania commercial debt collection matter. There are federal and state guidelines that must be adhered to as a debt collector.

A formal demand letter should include a description of the products or services involved in your dispute, the date(s) of service, a demand for the total amount owed, instructions for payment, a concrete deadline for payment, and specific consequences for nonpayment. Never include threats of any kind or even consequences that you do not fully intend to carry out. A demand letter should be sent via Certified Mail with a Return Receipt requested and should include any invoices or other referenced documentation as enclosures.

Enforcement of Foreign Judgments in PA for Out-of-State Creditor Businesses and Attorneys

A judgment creditor from any state outside of Pennsylvania can enforce that judgment in PA. Pennsylvania has adopted the Uniform Enforcement of Foreign Judgments Act, which sets forth the guidelines for proceeding with the enforcement of an out-of-state judgment, also known as a foreign judgment. An experienced PA creditor’s rights attorney should be retained to proceed with the enforcement of a foreign judgment in Pennsylvania, as specific procedural requirements must be strictly adhered to.

An attorney will be familiar with each step of the process for enforcement of a foreign judgment, including how to file an authenticated copy of the foreign judgment with proper affidavits regarding the judgment creditor and the judgment debtor attached. A properly filed foreign judgment in PA has the same effect and is subject to the same procedures, rules and defenses as a judgment of a court in which the judgment was originally entered.

Essentially, this means that once a foreign judgment is properly filed, a PA creditor’s rights attorney can proceed with enforcement of the foreign judgment as if the judgment was originally obtained in Pennsylvania. Post-judgment remedies available to creditors include bank account garnishment, Sheriff sales, and property liens.

PA Mechanics’ Lien

A mechanics’ lien is a legal tool available to contractors and subcontractors that can prove useful as a mechanism for collecting an outstanding debt. A mechanics’ lien places a hold on the title to real property so that the property cannot be sold without the owner first paying the contractor for work performed. Learn more about Pennsylvania Mechanics’ Liens.

Debt Collection Settlements

In many situations, a debt collection settlement can be reached, sparing our business creditor clients much of the time and expense associated with debt collection litigation in the PA courts. Settlement may require a payment in full or a payment arrangement whereby the PA debtor can satisfy the debt over time. Settlement agreements for debt collection matters must be carefully drafted by an experienced PA creditor’s rights attorney in order to preserve the business creditor’s rights and to protect the business creditor from further debtor default. Learn more about PA Debt Collection Settlement Agreements.

PA Creditors’ Rights Attorneys

The Martin Law Firm concentrates in the areas of creditors’ rights, commercial debt collections,and enforcement of foreign judgments in Pennsylvania. Our PA creditors’ rights attorneys assist companies in various industries, including banking, computers and technology, advertising and marketing, construction, legal, and other providers of goods and services. Our creditors’ rights attorneys have helped many clients from both in-state and out-of-state to successfully collect on outstanding commercial debts for debtors located throughout Pennsylvania. Contact an experienced PA creditor’s rights attorney at The Martin Law Firm today for a free case evaluation at 215-646-3980.