The quest to obtain financial compensation for unpaid commercial debt might require legal action. To be more specific, you need the assistance of a commercial debt collections specialist to pursue civil litigation on your behalf. Your legal action as a plaintiff is filed in the appropriate court, setting the stage for a lawsuit that obtains financial compensation from the debtor, referred to as the defendant.
Commercial Debt Recovery Through Civil Litigation
Commercial debt collection is performed after a business fails to provide payment for services or goods rendered. Such litigation is typically pursued after the company that has not been paid seeks repayment of the debt through correspondence from its accounts receivable department and collections professionals. The failure to respond to the debt collections efforts and pay the requested sum of money paves a path for civil litigation.
Filing civil litigation with the assistance of a commercial debt collections law firm or other specialist is the initial step toward recovering the money owed following unsuccessful collections efforts. The next step is to serve the commercial debtor with notice of the lawsuit in the form of the summons and complaint filed with the court. Fail to serve this crucial legal paperwork to the commercial entity in question, and its representatives won’t be aware they are being sued for an unpaid commercial debt.
The civil litigation proceeds to a hearing after the summons and complaint are appropriately served in accordance with the nuances of the state’s service laws. However, if the defendant fails to file an Answer to the plaintiff’s complaint, the court is likely to rule in favor of the plaintiff without a court hearing. Such a ruling is made in a Motion for Default Judgment.
Engaging in Legal Battle
The court hearing about the commercial debt allows both sides to make their legal arguments before a judge. The hearing will likely reference the defendant’s Answer in which company representatives formally responded to the accusation of failing to pay the debt in full and on time. If the plaintiff issued interrogatories as a component of the discovery process, the defendant’s responses (or lack thereof) would also be analyzed during the hearing.
The legal arguments in the court hearing require a nuanced understanding of commercial debt law, meaning an attempt to represent your company “pro se” is likely to fail. Put your faith in a proven commercial debt recovery specialist with years of experience litigating such cases. You will be liberated to narrow your focus on your work rather than attempting to navigate the complex legal maze.
Recovering Unpaid Debts Through Civil Litigation
The judge presiding over your commercial debt civil litigation case will rule in favor of you, the plaintiff, or the debtor, referred to as the defendant. If the judge rules in favor of your business, they will provide you with a timeline for the defendant’s payment of the money owed. If the defendant does not pay the money owed according to the timeline determined by the court, there is an opportunity to use legal attachments on the defendant’s assets.
For example, you can place a lien on the defendant’s property, be it a business complex, equipment, or something else of value. The court might even order the defendant to sell property to satisfy the financial obligation to the creditor. It is also possible for the court to freeze the defendant’s bank accounts and other financial accounts until the amount of the judgment is satisfied.
The most important takeaway from the civil litigation process for commercial debt is that your business needs an experienced commercial debt collections specialist to pursue justice in a court of law on your behalf. Do not give up in your quest to receive the financial compensation another commercial entity rightfully owes you. Instead, pursue the money owed with the guidance of your commercial debt collections attorney, and there is a good chance the civil litigation process will work to your benefit.
