| Debt Collection Activities, continued | | | | collecting debt owed to you or your business |
| For Arizona business owners, four most effective | | | | would be to go to trial. This is the common |
| and common types of debt collection activities | | | | process of moving a lawsuit though the count |
| are the demand letter, mediation, arbitration, and | | | | system in order to resolve the debt collection |
| litigation. The value of these processes varies in | | | | dispute. This is likely the first action many |
| every case, but the explanations of each one are | | | | businesses think of, and consists of a suit being |
| explained below. This is an article from a | | | | filed against the debtor in an attempt to recover |
| Scottsdale, AZ law firm about debt collection and | | | | the money that the company is owed. In this |
| business contract law, and deals with arbitration | | | | scenario, both the debtor and the business hire |
| and litigation as they relate to contract debt | | | | legal council and move a case thought the courts |
| collection for a business. | | | | until it is tried in front of a judge (and possibly a |
| Arbitration | | | | jury). This course of action is more appropriate |
| This is a similar procedure to mediation, but the | | | | for bigger debts of those where there is a |
| final outcome is completely binding upon both | | | | substantial dispute as to the debt itself. Litigation |
| parties involved. In arbitration, the legal council of | | | | may be placed in Superior or the Justice court. |
| both parties selects and agrees upon a private | | | | Justice court handles matters of disputes totaling |
| judge, and each side presents their case to this | | | | less than $10,000, while the Superior court is |
| arbitrator in an out-of-court proceeding. This third | | | | utilized for larger debts. Many companies will try |
| party participant then issues a binding decision | | | | their own cases within the Justice court, generally |
| about the outcome of the conflict at hand. | | | | with the guidance of legal council. Of all the options |
| Arbitration will resolve the conflict faster than | | | | for debt collection, litigation will likely generate the |
| litigation and have a set answer to a business' or | | | | highest attorneys' fees and take up the greatest |
| debtors legal woes in a quicker manner. In many | | | | amount of time. |
| cases, this process will also be less expensive to | | | | (Please note: while informative, these posts are |
| both parties than a jury trial would otherwise be. | | | | not intended to be formal legal advice and are not |
| Litigation | | | | completely authoritative and should not be solely |
| The lengthiest and most involved option in | | | | relied on as a primary basis for legal action. |