Whether you have hired a team of experts from a debt collection agency or attempted the delinquent debt collection process on your own, the journey is certainly not easy to undertake. One of the best ways to make such a lengthy and complex process a bit easier is to ensure that you have the right pieces of documentation.
There are a number of different documentation necessary during the debt collection process. The process should start when you do business with the debtor and include all the information. To make things easier, consult a collection lawyer in New York and ask them for a list of documents you might need during the process.
Important documents you may need during the debt collection process
- Contact information: Locating the person before you even begin the debt collection process can be tough. In order to make contact with the person, you are going to need their current contact information.
- Credit application or equivalent: This is one of the most crucial pieces of information and should contain the full name, address, profession, name and address of their business (if any), nature of the business, bank name and account number, etc.
- Contract: The contract is important because it contains all the information about the relationship and the deal you made with your client. This should include the amount of the debt, interest rates, repayment plan, penalties upon no payment or late payment, etc.
- Information of other people liable for payment: You would require information about the other parties that may be liable for the payment in case the original debtor cannot due to some reason. This includes names, addresses, telephone numbers, social security numbers, birth dates, employer identification numbers, driver’s license numbers, etc.
- Proof of owed money: One of the most important documents that you must possess is the one showing clear proof that the debtor owes you money. You may collect a judgment report from the court to keep as evidence.
- Attempts to collect: By the time you are at a point where you need to hire a debt collection agency, you may already have made several attempts to collect the money. Having documentation showing each time you tried to collect the money can be a valuable piece of evidence. You can create your evidence by keeping records of the dates on which you tried to collect and what response you received from the debtor.
The bottom line is that having the proper documentation allows you to have a strong case in every situation.