Full Video Transcript
If you have loaned money to someone who has not paid you back as agreed or if you are a business owner and one of your customers has stopped making payments on an order, you might be wondering what you can do to collect the money owed to you. Each state has laws about how a creditor can go about collecting a debt, such as wage garnishment, property liens, collection lawsuits, shares sales and others. In the meantime you can take some fairly simple steps that may increase your chances of actually recovering the money you are owed. First, keep a written log of all your attempts to collect when payment is due: phone calls, letters, and emails. And take notes of any conversations you do have with the debtor or other people you may speak to on their behalf. Written demand for payment is generally recommended at 30, 60 and 90 day intervals after default. The early letters generally remind the debtor that payment is past due and request they make payment arrangements. If this is unsuccessful the final letters usually notify the debtor that failure to pay within a certain time period will result in the account being referred to a collection agency, attorney or small claims court. And that all legal remedies, including attorney fees and costs, will be pursued. If you need to collect on a debt, contact an attorney in your area to figure out what options are best for your situation.