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Law Collection Agencies: A Great Choice for Busy Lawyers

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When debtors fall behind and eventually stop making payments to attorneys and law firms for services provided, it may be necessary to hire an outside law collection agency to collect the debt.

Obviously the attorney has the skill and knowledge to take the debtor to court, or to take whatever action they need to in order to collect. However, what lawyers may not have is time; they usually don’t have time during day to put their other clients aside and run around trying to collect a debt that’s past due.

Law Collection May Involve Hiring an Agency

When an agreement is made between a client and a law firm, in which the law firm provides their service on the promise that the client will pay a certain amount of money over time, it’s not a secured debt. That means it’s not something that can be repossessed if the debtor fails to pay (such as a car, home, boat, etc.).

Unsecured debts are harder to reclaim because if the debtor doesn’t really want to pay they know nothing physical can be taken from them. That’s not a very smart attitude, but that’s how it often works with debtors who have no intention of paying their debt.

Having the principal attorney of a law firm hire another law firm to collect its debts can also be a great idea for firms that typically don’t deal with collection issues. While it’s true that some attorneys will offer a wide variety of law services, nowadays it’s true that most of them are very specialized. This is because the laws regarding just about everything have become so vast, complicated, and sometimes confusing, it’s easier for lawyers to specialize.

Some specialize in auto insurance accident claims; others specialize in medical claims or real estate law. Being specialized as a lawyer means you’re possibly very knowledgeable in one type of law, but not necessarily in others.

The Agency Can Collect While the Client Law Firm Can Focus On Its Business

Law firms have deadlines, meetings and places to be every day, just like every other business. Letting another law firm act as the law collection agency for the first firm’s past due accounts means the firm can focus on what it has to do to meet its own deadlines. And if they hire a law firm that specializes in law collection, that firm will likely be able to make efficient and fast work of collecting the debt.