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When a Lawsuit Is Unavoidable
Sometimes a lawsuit is the only way to collect a debt. Your lawyer may recommend a lawsuit after attempting to collect with a demand letter and investigating your customer’s ability to pay. For example, you may have to sue a solvent customer who refuses to pay without justification or who fails to respond to your lawyer’s letter and follow-up phone call. If the customer is out-of-state and is not subject to jurisdiction of your state’s courts, your lawyer may recommend referring the matter to a lawyer in that state. Be sure your credit and collection policy names the employee responsible for working with your lawyer so that critical time is not lost.
Commencing suit may cause the customer to pay. In other cases, the customer may ignore the lawsuit, or hire a lawyer to defend it. If the customer fails to pay after commencement of the lawsuit, your lawyer will take the necessary action to continue it, such as motions, discovery of information and, if necessary, trial. If the customer does not have a valid defense, the action should result in a court judgment in your favor.
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The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.
Copyright © 2008 by Velasco Law Office. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement.
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