Texas Collections
Although many commercial litigators state they handle collection files, few lawyers in Austin have the breadth of debt collection experience that our firm maintains. Traditionally, many lawyers believe that the case ends at the time the verdict is read. Today, the signing of the judgment is only the beginning of the collection process. Lawyers now must plan for debtors that,
- have time to hide assets;
- have laws largely in their favor in Texas; and
- have many business organization entities that hinder and delay creditors.
The collection process actually starts, not when the account is placed for collection with the attorney, but well before that ever occurs when the decision is made to do business with the debtor or grant them credit. As part of the representation, a lawyer should work with the director of credit or credit manager to review the application for credit, the personal guaranty, the security agreement / UCC-1’s, and the contract documents are satisfactory to ensure that every opportunity exists to get information and priority before the debtor starts defaulting. Once in default, there is a defensive posture that makes everything more difficult, and the early bird often gets the worm.
Although every case is different, lawyers should work with the creditor to ensure that a “staged” approach is followed, constantly analyzing the collection file for whether “good money is going after bad”. This allows the creditor to maximize its budgets on the cases most likely to secure payment.
If you have a legal issue related to Debt Collection, particularly in Austin or Travis County, please contact Marc Lippincott for an appointment to discuss.