Georgia Commercial Debt Collection: Attorney or Agency?

You have worked hard to build a thriving business and things are going great, but your margins just are not adding up.  Quick research yields that your business has a number of delinquent accounts on the books, and it is beginning to adversely affect your cash flow.  You make calls yourself, but just cannot seem to get these customers to pay, so now you look outward for help.  Your first major decision point is whether you hire a collection agency or a collections attorney.

With ever-increasing protections for debtors, the rules for creditors to collect debt have become stricter with more severe punishment for violations of the Fair Debt Collection Practices Act, including monetary damages, attorney’s fees, and more.  No matter which party you ultimately choose, it is paramount that the collector operate on the right side of the law.  That said, both agencies and attorneys are operating under the same goal, which is to collect on the debt that you hired them to retrieve.  There do, however, exist differences in regards to how an agency attempts to collect a debt vs. efforts of an attorney.

Collection agencies will often take the same steps to collect as you did, using a multi-communications strategy to reach the debtor. This can include phone calls, letters and/or emails to retrieve what is owed you.  A collections agency can also file a credit report on your behalf.  The use of a third-party name can instill greater urgency within the debtor to pay and the collection agency has experience they can draw from to drive results.  An agency is a superior option when there is a large amount of accounts with a small delinquent balance to recover on.

A collection attorney could take similar steps and produce a different effect.  The largest difference in approach is that an attorney can also take a debtor to court on your behalf.  Retaining a Georgia collection attorney holds more weight and authority since it signifies that legal action may be imminent.  If court becomes necessary, a judgment in your favor opens up alternative methods to collect the money owed, such as wage garnishing, tax liens, and income collections that are not available through agency collection.

You may still not get the entire amount owed to you, but you now have other ways to recoup at least a portion of the funds.  Collection Attorneys are the clear choice when there is a large delinquent debt that would incur significant hardship on the creditor should the delinquency carry on.  This is because an attorney can pursue the matter beyond credit reporting and phone calls, compelling the payment of the debtor through the court system.

Hiring a law firm specializing in debt collection has many advantages.  Thrift & McLemore’s attorneys are qualified in the State of Georgia to collect debts on behalf of their clients.  We can save you time, money, and frustration because prior to any collection action, we evaluate the legal merit of your claim, including statutory and evidentiary review.  Contact Thrift & McLemore by email at [email protected] or by phone at 678-784-4150 to discuss how we can help you and your organization today!

Collecting on your Georgia Commercial Debt through Garnishments

As a creditor in Georgia, and especially one experiencing delinquent debts, your first objective is to pursue any legal means to obtain satisfaction of the debt owed to you.

Lawyer Atlanta GA

There are many ways for creditors to collect this delinquent debt, with varying degrees of difficulty, all of which depend on how hard the debtor intends to fight payment.

The easiest and most commonly adopted approach involves the use of a qualified attorney or debt collection agent.  This individual or entity will begin by sending either a demand letter or otherwise attempting to contact the delinquent debtor to amicably resolve the debt and get the creditor paid.  Unfortunately, this approach has mixed success.

More common in Commercial debt collection matters, due to the sophistication of parties, and contractual nature of the agreements, the creditor must go to court and receive judgement on delinquent debt in their favor, which then entitles them to act in regards to compel payment.  This judgement is a declaration by the court that the debt is valid, and the creditor can now seek to enforce the debt.

The most common tool used by these newly appointed “Judgement-Creditors” is Garnishment.  Georgia Garnishment Law is found in Title 18 Chapter 4 Article 4 of the Georgia Code, and follows the federal rules generally.  Specifics on the process can be found in OCGA 18-4-4 which outlines the process and period of Garnishments in the state.  There are two ways to enact a garnishment on a delinquent debt once judgment has been granted or the debt otherwise perfected.

The most common of these is a Summons of Garnishment, or simply a bank garnishment.  If a bank is served with this garnishment, they must immediately place a hold on the debtors account and may to the court all funds on deposit at the time of service, plus any additional funds that may be deposited into the account within the next 30 days.  After this thirty-day period, the garnishment is no longer in place.

Although less common, Georgia also allows the perfected creditor to garnish a debtor’s wages by way of a Continuing Garnishment.  After receiving service of a Continuing Garnishment, the employer of the delinquent debtor must pay into the court 25% of the debtor’s net take home pay.  This garnishment remains in place for the lesser of 180 days or the full extent of the debt has been satisfied.  Georgia also allows for renewal of this garnishment, but it must be again filed with the court.

Garnishments are generally filed in the Magistrate Court in the county for which the garnishee is physically located.  Costs may vary county to county, but are typically around $50 for filing, plus the cost for summons of service.

If you have questions regarding a delinquent debt of any kind and are at a loss for how to move forward with collecting it, let us help!  Thrift & McLemore’s attorneys are qualified in the State of Georgia to collect debts on behalf of their clients.  Contact Thrift & McLemore by email at [email protected] or by phone at 678-784-4150 to discuss how we can help you and your organization collect on your receivables and delinquent debts.

Thrift & McLemore Launches Commercial Collections Practice Area

Atlanta, GA – We are pleased to announce the launch of our Commercial Collections practice area.  Our new practice area specializes in handling commercial collections claims in commercial debt recovery and litigation.  Thrift & McLemore’s Commercial Collections practice includes open accounts, unsecured and secured loans, credit cards, automobile loans, student loans, foreign judgments, real property foreclosures and commercial claims.   We represent commercial creditors, financial institutions, government entities, insurance companies, service organizations and certain individuals in recovering commercial loans.

Thrift & McLemore is proud of our record of service to business clients.  The breadth and scope of our practice encompasses:

  • Sale of goods disputes
  • Dealer disputes
  • Distributor disputes
  • Collection on letters of credit
  • Issuing demand letters
  • Bankruptcy workouts
  • Litigation
  • Collection on business agreement defaults
  • Attachments
  • Garnishments

Working together, the location of tangible assets, existing contracts and employment, bank accounts, equity in inventory and other assets, may be located and serve as a basis for recovery.  We are dedicated to the proposition of being a vital part of a client’s credit and recovery.

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10.0Craig Thrift
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