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How To Go About Collecting Money Owed From A Debt

Updated on May 9, 2012

Does Someone Owe You Money

If someone owes you money, you have every right to go after what is owed to you. The bottom line is that while you can go after that debt, you have to do so in a way that is professional and legal. This hub will outline some great ways to get the debts you are owed and do so with as little hassle as possible.

Be Polite Yet Firm

The first thing you need to do is to notify whoever you owe that there is a debt. Whether it is a friend, or a business that owes you money, you need to make sure that you are not pushy at first. There could be a million different reasons why you have not gotten your money yet. What happens if:

-There was an illness in the family that cost money that was owed to you. Would you really deny someone health care to cure that illness?

-The person who was supposed to send your check sent it to a wrong address, or sent it to the wrong account. Not cool, but it happens from time to time.

If you go in with an attitude, it could make the person who owes you a little defensive and not as apt to pay you what is owed.

Know Your Rights

If being polite about bringing up the debt was not a good enough way to get your money, you should understand what you could do next. Some next steps include:

-Sending another email or phone call

-Certified letters outlining the debts and further actions that could happen

-Take the debtor to court

Usually, once a court action is threatened, it is enough to get your money. However, if you do not collect on your debt, go to court and get your money. No judge is going to deny your case if you have the proper evidence.

What You Need To Prove The Debt

Whether you are owed money by a company for services rendered, or an individual, you need to get the deal in writing. Specify what was done and what is owed for services provided. Without anything in writing, you are going to have a hard time proving your case.

Make sure that you get a signature to whatever agreement is agreed to. You don't want a document proving that you are owed money, only you have no way to prove that there was a legal debt. Also be sure to show any attempted communications and good faith efforts to get the debt before going to court.

Any witnesses to the agreement to pay you money would be helpful as well. Usually, any contract that is signed and legal in the state it was signed, is going to be enough to prove your case. It doesn't even have to be fancy, just a signed document between the two parties.

If You Still Aren't Paid

If you don't get your money even with a court order, you can ask for wage garnishment, or for possible tax refund garnishment. These funds will be taken from the paycheck of the entity that owes you money, and given to you.

Just keep in mind this can be hard if you are dealing with someone who is unemployed, and you only get a certain amount each check, so it can be awhile before you get paid regardless.

Even if it might be hard at times, do not give up and go after what is yours! You earned that money, or in the case of a loan, it was your money, get it back! That money could be used in an investment that could grow your money for the long run.


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