1. Get everything in writing at the start. Put your understanding down on paper, and have your client/patient/buyer sign it.
2. Use written billings, and document the work you perform (time slips, invoices, notes, etc.).
3. Use a “Guarantee of Account”. This is a document that says if your debtors do not pay when due, late fees accrue and they have to pay for attorney’s fees and collections costs, not you.
4. Get and keep accurate and complete information on your clients/patients/buyers,including current home address and phone number, driver’s license number, place of employment, etc. Keep a photocopy of any checks the debtor has written to you. This information will help your attorney collect from your debtor, garnish his wages, attach his/her bank accounts, etc.
5. Once someone owes you money, write them instead of calling. Putting it on paper makes it harder to ignore.
6. If the debtor doesn’t respond promptly, take action. Remember, while the Statute of Limitations for most collection cases in Maryland is three years, overdue accounts are much easier to collect if you act promptly. We recommend that you not wait any longer than 90 days to refer your overdue accounts to your attorney for collection. For further information, please call us at 301-251-1600.