In the realm of debts, there are two different forms of legal action that can be taken to get what you are owed: you can hire a lawyer to file a lawsuit, or hire a collections agency. A bankruptcy lawyer in Bucks County, such as William D. Schroeder, Jr., understands the difference between these two processes and can help you determine which one is the best for your needs. Take a look at our overview and comparison of these processes below.
Collection Agencies
Hiring a collection agency is a great first step towards getting someone to recover the debts that they owe you. Often, resorting to hiring a lawyer may not be necessary and you will be able to get the non-paying party to repay what they owe through a collector. They are also ideal for those that do not know the location of the debtor, as most collection agencies will offer “skip tracing” services to track them down.
When to Use a Collections Agency
- Smaller claims
- Traceable debtors
- Simple cases
Lawsuits
For those that have resorted to collections agencies and still had no luck or are owed a large sum of money, investing your time and money into a lawyer is the best bet. Using the services of an attorney to file a lawsuit increases your chances of debt recovery significantly and helps you build a solid case against them to ensure that you will get your money back. You may also be allowed to seize assets from the debtor to make up for the debt that they owe.
Which Is Best for You?
Collections agencies are quick and effective solutions that are a great way to get smaller debts paid fast. However, for larger amounts that do not seem to be going anywhere, hiring a lawyer is the best option. Using a bankruptcy lawyer in Bucks County from our firm can help you build a solid case against your debtor and present a case to the court that will maximize your chances of winning.
Costs
Although collections agencies are typically cheaper, making them ideal for your first collection attempt, it ultimately depends on the company and the complexity of the case. In certain situations, collection agencies can be just as expensive as hiring a lawyer. For those in a situation where they are forced to choose between the two and prices are roughly the same, hiring a lawyer is a better choice because that option tends to offer a higher chance of success. This is especially true if you have an established firm behind you that understands the law comprehensively.
Hiring a bankruptcy lawyer in Bucks County like William D. Schroeder, Jr. can help you build a solid case against your debtor and ensure that all of your money is returned. For more information or further questions, give us a call at (215) 822-2728 and we will be happy to assist you further.