When a creditor is owed money by a debtor, whether that debtor is a vendor or a customer, or an individual or company, the process can be daunting when deciding what to do. 

THE LEGAL ASPECTS OF THE DEBT COLLECTION PROCESS

The debt collections process against consumers must comport with federal and state statutes, including the Federal Fair Debt Collection Practices Act and the Texas Debt Collection Act.  Debt collection in the commercial context is not required to follow these statutes, but it is good business practice to use these statutes as the standard.

Other considerations when collecting debts owed to you include locating the debtors assets, fraudulent transfer of assets, the possibility of pre-judgment actions, impacts of bankruptcy, and ultimately filing suit. 

FILING A COLLECTIONS LAWSUIT

If filing a law suit becomes necessary, it is important to understand the type of debt.  For example, the collections procedures and options for promissory notes can differ from the procedures and options used for goods and services provided on an account basis. 

After a successful suit and a creditor obtains a judgment against the debtor, the possibility always exists that the debtor will not pay the judgment.  In such a case, consideration will need to be given to how to execute on that judgment. 

CONTACT US

If any of these situations apply to you, please contact us here, or call us at 713.650.9700. We will be happy to assist you in assessing your options and determining the best course of action for collecting your outstanding debt.

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