Collecting an unpaid debt can be one of the hardest parts of running a business. When an individual owes your company money but refuses to pay, you may feel like you have few options even though you know the law is on your side.
Instead of selling your debt to some collection agency for a fraction of the amount owed, it might be a better idea to instead maintain ownership of the debt and attempt to collect on it with assistance.
If you have already made some collection attempts including contacting the debtor and trying to make payment arrangements and they have either been uncooperative or have agreed to certain terms and then failed to fulfill them, your next step might involve filing a civil lawsuit and taking that person to court.
The Florida courts can hold someone responsible for non-payment
When you have a legally verifiable debt that someone refuses to repay, you can hold them accountable for that refusal. People have legal obligations to their creditors, which typically stem from the contract that you have with the other party. When you present the courts with proof of the debt and the other party’s failure to make adequate attempts to repay, the courts can take certain measures to compel the other party to start repaying you.
Garnishing someone’s wages or bank account can be a way to force repayments when someone refuses to uphold their financial obligations. If the courts do garnish someone’s wages or accounts, you can either receive repayment directly from a bank account or every time that individual gets paid until they finally fulfill their obligation to your company.
There are many limits on garnishments in Florida
There are both federal and Florida state laws that limit garnishments for debt-collection purposes. Someone’s income and their household status will affect any claims that you make. The language in your agreement with them will also matter as your contract may include crucial legal terms that allow you to pursue a garnishment even if the debtor doesn’t agree to it.
Understanding the law and what your rights are as a creditor is crucial during debt collection activity. Mistakes might mean running afoul of the law, losing your court case or failing to collect.