Collectability of an Unsecured Collection
Collecting a debt can be tricky, especially if it is more than 180 days past due. Is it even collectable at this point? Hear what NCS's Kristin Alford has to say:
Yes, unsecured collections can be more difficult to collect than secured collections (i.e. past due accounts secured by a UCC filing, mechanic’s lien or bond claim), though you shouldn’t abandon all hope when an unsecured past due receivable hits your desk. When you are evaluating the collectability of account, specifically one that is unsecured, we recommend you use the following questions as a guide to help you determine the likelihood of a successful collection.
How old is the receivable?
Do you have documentation?
Is your customer still in business?
Does your customer have assets?
Is your customer in other collection litigation, judgments or bankruptcy?
See the full article authored by Kristin Alford, Education & Marketing Specialist for NCS, here.