Reasons Why Going to Small Claims Court on Your Own Is Not the Best Way to Collect on Outstanding Debts

By Michael Lebovic, President Canadian Corporate Legal Services

You can go to Small Claims Court on your own to collect monies / owed to you. The Small Claims Court is officially the court of the people and you don’t have to be represented by a legal professional. But the reality is somewhat different. Unless you are a retired person with no demands on your time and fairly strong nerves, your most cost effective move is to have a licensed paralegal represent you.

There are a broad variety of factors that we will discuss over several blog posts

Here’s the first one. The Small Claims Court process will be very time consuming and especially so, if you have multiple accounts to collect on. Each one will be a separate case with its own specific challenges. Remember that you are dealing with a bureaucracy where the clerks are not just there to expedite the forms that you are filing. They have been given a certain amount of power and they can stop you dead in your tracks if they feel that you made an error or, if you have not used the correct form or procedure according to their personal interpretation. Any error may require you to start the process all over again. Of course that means going back and filling a new set of forms and waiting in a long line again. Professionals have access to a fast-track line because they are processing a large volume of forms. Without a professional you would not benefit from their quick access or knowledge to avoid mistakes.

Here is an example of how forms can be improperly filed. One of the most common errors people make in Small Claims Court is that they don’t properly name the parties, don’t name the proper parties in the claim, and even name the wrong parties. Here’s something that we experienced not long ago. A large sign company gave us a file for money owed to them by a contractor working for a commercial landlord. The Landlord wasn’t named in the claim at all even though the sign in question was installed in his commercial building.

The contractor claimed that it was not their responsibility to pay at all and placed responsibility at the feet of the landlord. The landlord claimed the contractor was responsible. Because the landlord was not mentioned in the original case they filed in Small Claims Court they were unsuccessful. We brought the matter back to court and the client was able to collect the full amount that was owed. Oversights and “small “ errors can be costly.

Collect those Debts to Strengthen your Company’s Balance sheets and Improve Cash Flow

If you’re being tolerant of accounts that are more than 60 days overdue, you risk never collecting, especially in the current economy. Negotiating for debt recovery on your own can be problematic and ineffective. You don’t want your bad debt to cost you twice: once when you lose it, and again when you and you employees waste time going after it. Canadian Corporate Legal Services can help you avoid either outcome by providing negotiation assistance.

Canadian Corporate Legal Services can help you collect those debts to strengthen your company’s balance sheets and improve cash flow. We represent large accounting firms, law firms, advertising agencies, dentists, veterinary clinics, contractors and a broad spectrum of businesses. For over 20 years, Canadian Corporate Legal Services has helped businesses with commercial debt recovery in Toronto, Ontario and beyond.

Canadian Corporate Legal Services operates on a contingency-fee basis. If we don’t collect, you don’t pay. There’s no financial risk. Assign your overdue accounts to the right people now and GET PAID!
* applicable court costs and litigation fees

Email (info@CanadianCorporateLegal.com), call +1-416-784-3770 or click here for a free assessment of the revenue Canadian Corporate Legal Services can drive from your over due accounts.

It pays to get the job done correctly with Canadian Corporate Legal Services, the leading commercial debt recovery company in Toronto.

Debt Recovery in a Tough Economic Climate

Canadian Corporate Legal Services’ kinder, gentler, and highly effective approach to negotiations and debt recovery in a tough economic climate

The current economic slowdown has forced Canadian companies of all sizes to face the unwelcome reality of unpaid invoices or bad debts. Debt recovery can be a problem. Negotiating for debt recovery on your own can be problematic and ineffective.

Some companies operate exclusively using electronic payments, letters of credit or C.O.D. deliveries. Not all businesses can function using these methods exclusively or at all. There is another challenging level of challenge involved in dept recovery.

Consider the following story. A lumberyard sells a truckload of lumber to a general contractor to renovate a new restaurant. No documentation is exchanged between the two companies or the restaurant. The general contractor was given thirty days after the delivery to make a payment. The thirty days have come and gone and the lumberyard has not received a payment. Weekly phone calls are not effective in stimulating a willingness to pay because of the restaurant’s undisclosed financial difficulties that the restaurant is experiencing. Each conversation becomes increasingly heated causing tempers to flair on both sides.

What to do? Typically, the next step is for the lumberyard to prepare a stern “demand letter¨. However, such a letter may progressively alienate the customer making matters worse. If there is a problem with the accuracy of the name of the company and names of the owners further complications can ensue.

We recommend that Canadian Corporate Legal Services be brought in at this stage stimulate an amicable negotiation for dept recovery. Our first step in negotiating debt recovery would be to build a detailed file with all pertinent details. This may include yes; credit history, review of debtor’s actions in connection to this latest debt, names of those involved, exact company names, details of the goods supplied, taxes levied and times of shipping and receipt. Next, we would call the owner of the general contractor and establish a cordial working rapport. Politely but firmly we would indicate that we are acting on behalf of the lumberyard and were preparing to take the matter to court in a predetermined period of days. Emphasizing that the lumberyard has supplied a needed component of the restaurant. We would also appeal to the owner to arrange for payment in a timely and workable timeframe and point out that he might be liable to our client as well. If these calls fail, a demand letter is sent to the restaurant indicating the commencement of legal action. All these efforts are meticulously recorded. Generally, we achieve positive results without the need to go to court. If there is need we have the expertise to proceed quickly and successfully.

Canadian Corporate Legal Services has been actively involved in debt collections for over 20 years. Collectively, we have over 70 years of experience in helping companies negotiate and collect what is owed to them while preserving customer good will and a positive corporate image.

At Canadian Corporate Legal Services we take a kinder gentler approach to negotiating for debt recovery. Our method is to avoid alienation when working with people and companies who owe our clients money and try not to alienate them. Due to the current economical crisis people who owe money are generally nervous about unfair debt collection. Hostile phone call and letters is not an affective method and can be emotionally draining for both parties. Our approach is to appeal to their morals and good nature … while of course pointing out the additional cost and consequences of not clearing the outstanding balance. Our negotiations for debt recovery are often effective but if not we have the option of court to find the best way to proceed.

Many of our long-term clients come from companies that we have previously negotiated with successfully for debt collections.  A proof that our kinder gentler to negotiating for debt recovery approach can work for your company as well.  We like to work with our clients internationally to help them manage their account receivables and bad debt load. Here are some things to consider. Consider your CREDIT:
C ash Flow	Do you have the necessary cash flow?
R eceivables	Do you have a system?
E valuation	How do you assess your customer’s ability to pay?
D ebt	How do you collect overdue accounts?
I ncome	Does your price reflect the price of granting credit?
T erms	What terms are normal for your industry?

 

If you have a question about an outstanding debt or your accounts receivable issues please call at: 416.784.3770 or email us at theydidntpay@on.aibn.com.

What size of business does Canadian Corporate Legal Services work with?

Over the years, CCLS has helped businesses with commercial debt recovery in Ontario and beyond of all sizes in various industries. For example, we represent large accounting firms, law firms and Canada’s largest advertising agency. We have also represented dentists, veterinary clinics, contractors and a broad spectrum of businesses. In today’s economy we can help companies collect on debts to strengthen their balance sheets and improve cash flow.

Hello World

Canadian Corporate Legal Services has specialized in commercial debt recovery for 20 years.

If you’re being tolerant of past-due accounts, and if your accounts are more than 60 days overdue, you risk never collecting.

Over the last 20 years we’ve helped small, mid-size and large businesses recover millions of dollars in unpaid receivables. In tough economic times we can help harden your balance sheet and improve your cash flow

Visit: http://www.canadiancorporatelegal.com/index.cfm/id:19 or contact us at:

54088-500 Lawrence Ave. W.
Toronto, ON M6A 3B7
info@CanadianCorporateLegal.com
Tel.: +1-416-784-3770, Fax +1-416-784-3771

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Know The Value Of Your Time

The one thing that can keep you from collecting on bad debts is your fear that the time you spend collecting the debt may not be worth what  you recover. This fear is correct. Your time has  value and is better spent on sales or operations.

The one secret the collection agencies know about collections is the value their services deliver clients. Its saves them time, and aggravation. You don’t want your bad debt to cost you twice: once when you lose it, and again when you waste a lot of your or your people’s time going after it. Going with a collection agency can help you avoid either outcome. It can pays to get the job done correctly.

Our Services

Negotiation & Debt Recovery

Collection on contingency of:
• Commercial Accounts for all industries
• Unpaid legal fees or services
• NSF Checks
• Cost effective In-house & affiliated international
  attorneys
• Third party debt recovery

WE ALSO ACT ON 
•  Domestication of US Judgments
• Garnishments
• Writs Against Property
• Enforcement of Landlord-Tenant Tribunal Orders
• Skip Tracing of Debtors
• Asset Locating