Once a collection goes "legal": a short series for creditors.

Many collection or credit managers spend a great deal of time preventing collection problems, whether in the granting process or the in-house collection phase. More experienced personnel understand what happens when an account can't be collected or adjusted in-house and has to be placed with an outside agency. Most managers have had experience with collection agencies and have some sense how that process works. The more experienced managers have systems and relationship set up so their team knows exactly when an account gets placed and how that happens.

Fewer know the ins and outs of what happens after the agency makes its efforts, but can't collect or settle the account. This short series will cover the legal placement and litigation process for a typical collection claim for goods sold and delivered.

(Part 1 appeared in the June issue, Part 2 appeared in the July/August issue.)

Part 3: What Happens During the First Few Days After Placement?

Time is money. Strike while the iron is hot. The early bird gets the worm. He who hesitates is lost. There's a pattern. The better creditors' rights lawyers understand the pattern. Within the first day or two, there should be an analysis done of the claim and the proper strategy to use. A claim with lien or reclamation rights should be acted on immediately. These rights can disappear if not exercised by a specific deadline. All claims require a certain amount of identification, background and asset investigation. The amount of ...