Understanding how Process Service can help you with Debt Collection

Understanding how Process Service can help you with Debt Collection

Sometimes you’re owed a debt in business, and for some reason or another, the debtor cannot pay. You have already rendered services to the supplier or vendor, or customer, and you are rightfully owed those funds.

Suppose enough time and notification have been spent trying to have this commercial debt paid off. In that case, it’s time to consider other options, such as getting a debt recovery agency or support with debt collection services. Feel free to (click here) to hear more about that.

Yet there are a lot of different moving pieces when it comes to debt collection overall. It’s not just a debt recovery agency that may be needed to help reclaim a portion of the debts and close out those accounts receivables once and for all.

There’s an entire legal system to follow, and that starts with working with some form of a debt recovery process service that will help the legal practices that will allow you to start fighting for those funds.

What is process service in debt recovery?

First, let’s start with what process service debt recovery isn’t. They are not debt collection services. They will take no action to collect a debt or contact any clients or businesses that may owe you debt.

Instead, what they do is still a critical part of debt collection services, and that is to notify the debtor that legal action has been taken against them. However, it goes beyond that and states that the debtor will need to appear in court, and legal proceedings will start to take place.

This is a way to go to court and legally try to obtain your funds back, and it all starts with a process server handing the appropriate documents to the defendant.

Why is a process service for debt recovery so important?

Whether it’s the company or a third-party debt recovery agency that uses a debt recovery process service, it’s all about the action itself. A process service ensures that someone is notified that legal actions have occurred against them, without them being able to say they were unaware, didn’t receive notification or some other form of misrepresentation that they would use in an attempt to show no-fault and not end up in court.

How does a process service work?

There are a few methods to go about having this service notice occur. First, if it’s difficult to locate the business or they do not have a physical address or location, then you can use registered or certified mail in some cases.

Keep in mind, though, that this only works if there is someone there to open up the mail, and there’s proof of the opening, so it’s not the ideal option.

The other option, and one that is more common, is to have the actual process server look for the person in charge and responsible and directly hand them the papers. This is commonly known as being ‘served’ legal documents and that the necessary action needs to be taken.

The best part about this is that it can happen anywhere, and there are no major rules about where and when, as long as the papers are served and the viable proof is received.

One might think that the person who is getting these papers to appear in court can simply evade these process servers. That’s not entirely true, and it will not be in their best interest, especially when it comes to any type of legal proceedings for debt collection.

Process servers can simply state they’ve attempted to reach the person and send them a notice usually that requires that person to come directly to the process service to receive their paper. Failure to do so will look as if they’re trying to impede the legal system, which will have its ramifications.

It’s not supposed to be scary

Although it might be stressful and debt collection services tend to use process services for debt recovery often, it’s simply about keeping everything as transparent and as legal as possible. Again, it might not be the desired outcome, but it does help to get both parties to court to discuss how best to approach the aspect of the debt, and what resolutions, if any, can be taken to try to have both parties agree.

Debt collection services will use a process service for debt recovery because they either were contracted out to collect a certain amount of the debt or ended up buying the debt at a specific discount and are now attempting to recover as much of the debt as possible.

Going through these legal proceedings through a process service team only helps expedite the case’s outcome and get the debt recovery agency paid.