A Commercial Collection Agency Cannot Collect Money From Everybody
When business accounts become past due, there are times when a commercial collection agency is a waste of money. Collection processes often start with a series of letters that demand payment, followed by a law suit for permission to attach wages, bank accounts, or personal assets. These procedures all cost time and money.
If after a law suit, there are no wages to attach, or no funds in the bank, and the debtor’s personal assets are below a specified limit that varies by state, there is no money for you to collect. This is a judgment proof debtor; a person that meets all legal limits to be exempt from handing you money. Instead of collecting money in cases like this, businesses end up spending lots of money on nothing.
