Effective Reminders for Debtors on Payment Plans

How can you make sure your debtor doesn’t fall behind on a payment plan? 

After you set up a plan where the debtor is to pay off the account in installments, you should closely monitor the account, watching for any sign that the debtor is falling behind again. After the payment plan is implemented, remind the debtor that you expect all installments to be paid on time. 

Here’s how you can remind your debtor effectively:

• Send statements to the debtor in advance of each payment due date. Restate the due date, amount due, and remaining balance.
• Place reminder phone calls/emails. Remind the debtor that you expect all installments to be paid on time.

Read more in our latest article.

Need a collection company that operates in Michigan?

You’re in the right place!

Your money is our #1 priority. If your or your debtor live in Michigan, our collection company can help! Take the pressure and frustration off your plate by contacting the Mullers at (248) 645-2440 or by submitting a contact form.

Keeping Copies of all Client Material

Why is it important to keep all your customer’s records?

In our last blog, we talked about what notes you need to keep on your clients. Following that, here is a brief description of the copied documentation that you should keep alongside your notes:

1. Copies of all follow-up statements. Your copies should be exactly as they were sent to the debtor, including any markings of “urgent,” “reminder,” “past due,” and so on, so you can demonstrate your persistent efforts to collect the debt without resorting to litigation.
2. Copies of all demand letters and follow-up correspondence. Keep records of all correspondence, no matter how it was sent. Keep copies of letters, emails, faxes, or any other written exchanges.

Learn more in our latest article.

Need help collecting commercial debt from someone in Michigan?

You’re in the right place!

Your money is our #1 priority. If you or your debtor live in Michigan, we can take on your commercial collections. Take the pressure and frustration off your plate by contacting the Mullers at (248) 645-2440 or by submitting a contact form. 

Keeping Notes on Your Clients

What are the most important things to keep track of with your customers?

Before an account is delinquent, your records help you avoid confusion and get paid. After an account is delinquent, you’re preparing for litigation, which you hope doesn’t happen. You’ll need detailed notes if litigation comes into play.

Here’s a detailed breakdown of all the notes that you should keep on file:

1. Your customer’s entire credit file. Credit applications, invoices, purchase orders, debit and credit memos, and a ledger summarizing all transactions (a ledger comes in handy when your customer wants to nitpick the account or suddenly develops amnesia when reminded that there’s a balance due).
2. Notes of phone calls made or received, along with dates and responses. If the debtor admits owing the amount due, be sure to include that in your note. Admissions are extremely important if you end up having to go to court.
3. Notes made by employees of your company. Include notes regarding meetings, promises, disputes – anything relating to the account.

Learn more in our latest article.

Need help collecting commercial debt from someone in Michigan?

You’re in the right place!

Your money is our #1 priority. If you or your debtor live in Michigan, we can take on your commercial collections. Take the pressure and frustration off your plate by contacting the Mullers at (248) 645-2440 or by submitting a contact form.

What is a Receivership?

Is your debtor claiming that their assets are under a receivership?

Although less common than bankruptcy, you may encounter situations where your debtor’s assets are under receivership. A receivership is set up to protect a debtor’s assets for a specific purpose, such as during the course of a foreclosure. The creditor may ask the court to appoint a receiver to protect its interest in the debtor’s assets (for example, in a foreclosure, the assets would include the land, buildings, fixtures, etc.) until the action is resolved.

In appointing a receiver, the court accepts the creditor’s argument that the debtor can’t be trusted to preserve and maintain the value of its assets until the legal proceedings are over. The court then appoints an independent person, the “receiver,” to receive the debtor’s assets on behalf of the court and to exercise possession and control of the assets until the court ends the receivership.

Learn more in our latest article.

Struggling to Collect Debt in Michigan?

Are you struggling with an uncommunicative debtor?

Take the burden off your shoulders and give it to our Michigan debt collection experts. Muller attorneys can help you from start to finish! To get started or ask questions, call (248) 645-2440 or submit a contact form.

Where to Find Bankruptcy Records

It’s your right to follow your debtor’s bankruptcy case. Do you know where to look for info? 

Set up an account with the federal bankruptcy court through the U.S. Bankruptcy Court’s website: www.uscourts.gov. Click “Electronic access to courts,” and follow the instructions to set up a PACER (Public Access to Court Electronic Records) account. Access to court records through PACER is simple, fast, and cheap, and allows you to easily determine if a bankruptcy was filed and its current status. In less than five minutes, you can log in and learn about any bankruptcy filing. Use the notice from the bankruptcy court, or ask your debtor what name was used for the bankruptcy and what case number it was assigned. PACER will give you the rest.

Similarly, bankruptcies are tracked by internet credit report providers such as Accurint (www.accurint.com) and Autotrack (www.autotrack.com), and may appear in their reports. Although they charge fees, setting up an account with either company will give you access to a great deal of information.

Learn more in our latest article.

Struggling to Collect Debt in Michigan?

Are you struggling with an uncommunicative debtor?

Take the burden off your shoulders and give it to our Michigan debt collection experts. Muller attorneys can help you from start to finish! To get started or ask questions, call (248) 645-2440 or submit a contact form.

Why is it Important to Create Urgency?

Have you sent a reminder to your debtor, and they’re still not paying?

Imagine yourself forgetting to pay a couple of bills before you take a long vacation. One bill is from your doctor, and the other is from your credit card company. When you come home, you’ll probably find two or three reminders – in your mailbox or email and on your voice mail – from your credit card company. Each reminder is sterner than the last, transitioning from polite to insistent. In contrast, your doctor probably hasn’t contacted you at all or perhaps has sent you another statement. By the time your doctor warns you that your account may go to collections, you may have already heard from your credit card company’s law firm.

Credit card companies figured out a long time ago that urgency works. If you’re like most people in this situation, you’ll respond predictably: you’ll pay your credit card bill before you pay your doctor.

Debtors who have more debt than money (most of them) have to set priorities. You are competing with other creditors, and you need to make payment of your bill the debtor’s priority. 

Learn more in our latest article.

Michigan Collection Services You can Rely On

If you’re tired of trying to get ahold of your debtor and you’re looking for reliable collection services in Michigan, you’re in the right place. To get in touch with a collection firm that prioritizes you and your money, call (248) 645-2440 or submit a contact form here.

Beginner's Guide to Payment Reminders

How do you craft effective payment reminders?

When you follow up with your newly delinquent customers, you want to grab their attention. Common techniques for creating urgency include:

• Interest and penalties: Consistent with your credit agreement and state laws, add interest, late fees, or both. Give your debtor the unambiguous message that the consequence of dragging out payment is that they’ll end up having to pay more money.
• Attention-getting words and “big red letters:” It’s corny, but it works. Send notices more often with notations like “urgent” and “past due” on them in red ink. (If you’re dealing with consumer debtors, keep any red ink that suggests the communications for debt collection inside the envelope. You can mark the envelope “urgent,” but save words like “past due” for the printed invoice that you put inside.)
• Frequent reminders: Use a series of collection letters. For pointers on this, check out our guide to writing demand letters.
• Multiple modes of contact: Use different forms of communication to keep your reminders in front of your debtor: email, overnight delivery, telegram, hand delivery, fax, text messages, and even social networking websites – whatever works.
• Making a phone call: If collection letters and similar contacts don’t result in payment, sometimes a phone call will bring in the money.

Learn more in our latest article.

Michigan Collection Services You Can Rely On

If you’re tired of trying to get ahold of your debtor and you’re looking for reliable collection services in Michigan, you’re in the right place. To get in touch with a collection firm that prioritizes you and your money, call (248) 645-2440 or submit a contact form here.