There are several situations in which an attorney can better suit a creditor's collection needs than a collection agency can:

• If you need to seek recovery of property, you must go through an attorney.

• If you rent or sell construction equipment or supplies to a construction site, you usually need to consult with an attorney to assist in exercising your rights under your state's Mechanic's Lien Law.

• If you have some sophisticated accounts that require personalized, flexible attention, you would need an attorney. Collection agencies operate on a volume basis, so it is often difficult for them to focus much attention on individual accounts. They tend to follow a set path in each case. Attorneys, on the other hand, take each case individually and adopt a flexible approach.

• If you have a known dispute with a client, an attorney will be helpful in negotiating the dispute and arranging collection of the account.

• If you want to send a serious, no-nonsense message to your customer from the beginning that you mean business you might turn to an attorney.

A Matter of Time

When time is of the essence, attorneys may be more appropriate than collection agencies.

• It can be difficult to get collection agencies to move quickly on a single account for you. Since the ability to collect commercial accounts decreases dramatically over time, it is important to move quickly. The first person in line may collect 100%. The second may collect only 70%. The third may just collect 20%.

• Since a collection agency must use an attorney to sue, the process takes even longer. The agency forwards the case to an attorney, who acknowledges it and then send the suit requirements back to the collection agency. The agency forwards this to you. Once you approve it, it goes back to the collection agency, then back to the attorney. Then the attorney prepares papers, sends these to the collection agency, then to you. And so on.

When you work directly with attorney, you save all of this time.

On the other hand, if you have a number of straight-forward, delinquent open-accounts, collection agencies may be useful. They can handle a large volume of claims and work on a contingent basis. This allows you to pursue claims you might otherwise have to abandon.

Thanks to Robert A. Weissman

Senior Partner

Weissman & Weissman

Encino, California

Robert A. Weissman specializes in creditors' rights and real estate law. The firm helps companies secure recovery of outstanding accounts receivable and has a separate internal department to assist commercial and retail collection agencies. Weissman has been the creditors' rights columnist for the Los Angeles Daily Journal, a legal trade paper. http://www.ww4law.com/