All too often businesses leave out important provisions in contracts making it difficult, costly, and sometimes even impossible to collect on delinquent accounts. Why? Searching for debtors, suing debtors, and utilizing the legal system to collect on debts can cost as much as the debt itself. However, if you intelligently draft your contracts, you can create effective tools to collect against debtors.

PRACTICAL COUNSEL: GCPC attorneys can help your business implement provisions and procedures so that delinquent accounts can be dealt with efficiently and successfully.  At a minimum, when drafting your contracts, be sure to:

1.    Include provisions in signed contracts with customers allowing you to recover attorneys’ fees and costs when collection is required.

2.    Include a provision allowing for a set amount of interest to accrue on the past due account, so that you are not stuck with recovering little to no interest

3.    Know who you are doing business with, and keep up-to-date, accurate and comprehensive records of their contact information.