What are the stages of commercial collections?
For each claim that is accepted for collections, the first stage in the collection process is to investigate the debtor and its financial situation (assets and liabilities). This is done by accessing a variety of public records and private data sources available to us, including private subscription only data bases to which we subscribe. Based on the results of the initial investigation, a final demand letter may be sent to the debtor. We may combine this with a phone call to the debtor or personal visit to the debtor’s business premises. In some circumstances this step may be skipped entirely and a law suit will be commenced immediately. The second stage of the collections process is to file a lawsuit. This is a litigation to collect the past due receivable. The goal of commercial collections litigation is to obtain a judgment or settlement. A collections case is not undertaken in the anticipation of contested litigation. A collections case is one the debtor is not anticipated to rais
