Debt Recovery

Bail bond agents help their customers at the time when they need them the most, yet many customers do not fulfill their obligation to make payments on time.

Recovering money from such clients (debtors) is not easy. Debt collection laws prohibit even the creditors in most states from using threatening language, unlawful pressure tactics or making false statements, making the recovery process even harder.

If payments are delayed, a bail bond agent usually imposes a late fee that is added to the principal amount. However, if a debtor who has failed to make payments/installments on the previously agreed amount, he will find extremely hard to make further payments because the balance just went up due to the added interest. Chances that this person will become delinquent on his bills rise significantly after 60 days of non-payment.

It is extremely common for Bail Bond businesses to involve a Collection Agency which makes persistent efforts to recover money from the debtor. Involvement of a Debt Collection Agency also protects the relationship of Bail Bond agents with their customers and limit legal liabilities.

A bail bond collection agency will also ensure that all debt collection laws are followed, reducing the chances of a counter lawsuit from the debtor. They are often able to recover the balance in full or renegotiate a new payment plan with the debtor. To prevent delinquent accounts going permanently red, hiring a bail bond collection agency is the best bet.

Instead of relying on wishful thinking and wasting time, it is extremely important to forward the account quickly to a bail bond Collection Agency because the chances to recovering money from the debtor and the cosigner fall significantly as the time passes by.  These accounts are directly assigned for contingency collections due to the nature of intensity and diplomatic efforts required.

A professional Bail Bond collection agency will run several checks against the debtor, the most important one being the Skip Trace, which in most cases enables to find the latest address and phone number of the debtor if he is hiding.

Collection agencies are insured for any potential lawsuit that may come during the due course of recovering the debt. They may take the debtor to court if the amount is significant and may attempt to garnish wages or attempt to attach assets if the state law permits them to do so.

Some of the nation’s largest senior living centers trust us with their accounts receivable.

We consistently deliver strong recovery results, outstanding customer service, and protect their reputation throughout the collection process. Do check us out!

We understand that for assisted living, memory care, and senior living communities, recovering unpaid private pay balances is a unique and sensitive challenge.

You are not just collecting from a “customer”; you are communicating with a resident’s family or “responsible party” during what is often a difficult, emotional, and stressful time.

Our entire process is built to protect your community’s reputation and ensure 100% HIPAA compliance while professionally recovering what you are owed.

Proactive Strategies: How to Reduce Delinquency Before It Starts

As your partner, our goal is to help you improve your entire revenue cycle. The best collection is one that never has to be sent. We advise our most successful clients to focus on these three in-house best practices:

1. A Clear Financial Agreement: Your admission packet must include a clear, simple, and separate “Financial Responsibility” agreement. It should explicitly state who the “Responsible Party” is and what their obligations are.
2. Proactive Medicaid Communication: If a resident is “Medicaid Pending,” your team should have a clear process for communicating with the family about their private pay responsibility during the “spend down” and “gap” periods.
3. Clear, Itemized Statements: Confusing bills are the #1 cause of disputes. Sending a simple, itemized statement to the Responsible Party (not just the resident) can prevent 90% of simple delinquencies.

When Is It Time to Escalate for Professional Help?

It’s time to let your staff focus on resident care when you see these red flags:

• The Responsible Party has ignored two or more statements.
• The resident has moved out or passed away, and the family is no longer communicating.
• A “Medicaid Pending” gap has been adjudicated, and the family is not paying the remaining balance.
• An invoice is 90+ days past due.

The Senior Living Difference: Why Your Partner Must Be an Expert

You cannot use a generic agency for senior living accounts. The risks are too high. Our approach is built around the four pillars of this industry.

• 1. Extreme Reputation Sensitivity: A single bad Google or Yelp review from a resident’s family can be devastating. We are not an aggressive, “old-school” agency. We act as polite, professional, and empathetic negotiators to find a solution.
• 2. Navigating Family Dynamics: The “debtor” is rarely the resident. We are experts at communicating with adult children (“responsible parties”) or trustees, who are often stressed, grieving, or dealing with sibling disputes.
• 3. Ironclad HIPAA Compliance: As your “Business Associate,” we sign a BAA (Business Associate Agreement) and adhere strictly to all HIPAA protocols. We only use the minimum necessary PHI (Protected Health Information) to resolve the account, protecting you from legal risk.
• 4. Complex Financial Scenarios: We are trained to handle “Medicaid Pending” gaps, “Spend Down” issues, and, most delicately, resolving final bills with a resident’s estate.

Our Compassionate Recovery Process

We offer flexible steps to match your needs. Most of our senior living clients use Step 2 followed by Step 3 for the best results. (This is practical guidance, not legal advice. We tailor our approach to your specific situation and the latest rules.)

1. Step 1 — First-Party Courtesy Reminders (Fixed-Fee) We act as your extension with five soft reminders for fresher balances (0–60 days), sent as if these reminders are coming from you.
   • Typical Fee: $15 per account.
2. Step 2 — Third-Party Written Demands (Fixed-Fee) Five professional letters on our letterhead that prompt action while preserving goodwill.
   • Typical Fee: $15 per account.
3. Step 3 — Full Third-Party Collections (Contingency) Persistent, polite phone and digital outreach from our HIPAA-trained specialists. We negotiate payment plans and settlements to get you paid.
   • Typical Fee: 40% of amounts recovered. No Recovery, No Fee.
4. Step 4 — Legal Collections (Contingency, Client-Approved) For large, unresponsive accounts, we escalate to an attorney after an in-depth review, and only with your explicit approval.
   • Typical Fee: 50% of amounts recovered. No Recovery, No Fee.

Key Benefits of Our Service:

• For Steps 1-2, payments go directly to you.
• We can collect in all 50 states and Puerto Rico.
• Free Services: We provide free bankruptcy screening, litigious debtor checks, and free address verification on all accounts.

Specialized Expertise in Action

• $12,500 Recovered: We located a “responsible party” who had moved out of state, assuming the bill would be forgotten. Our 50-state license allowed us to find them and secure payment in full.
• $8,200 Negotiated: A resident’s account had a “Medicaid Pending” gap. We patiently monitored the account and worked with the family to set up a payment plan for the co-pay once it was approved.
• $16,000 Recovered: We respectfully worked with the executor of a resident’s estate to get a large, unpaid balance paid before the estate was closed.

Our Ironclad Compliance (FDCPA, TCPA, HIPAA)

As your partner, we are a legal shield. These are consumer debts, so the FDCPA (Fair Debt Collection Practices Act) fully applies. We are 100% compliant.

Furthermore, we are experts in the TCPA (Telephone Consumer Protection Act), which has strict rules about contacting cell phones. Our compliant approach protects you from pass-through liability and lawsuits.

Frequently Asked Questions

• Are you HIPAA compliant?
  • A: Yes. We are experts in HIPAA and can sign a Business Associate Agreement (BAA) with your community before we begin.
• What if the ‘Responsible Party’ claims they aren’t liable?
  • A: This is a complex legal and common issue. We will review the Financial Responsibility agreement you had signed at admission. We then work respectfully with the individual (or their attorney) to validate their obligation.
• What if the resident has passed away?
  • A: This is a common and delicate situation. We are trained to respectfully contact the executor or responsible party to resolve the final, outstanding balance as part of the estate.
• What if the family is waiting for Medicaid approval?
  • A: We “pause” active collections and monitor the account. Once Medicaid is approved, we will work with the responsible party to resolve any remaining private-pay gap or co-pay.

Ready to Improve Your Cash Flow?

Stop letting aged receivables hurt your bottom line. Contact us for a no-obligation, fully compliant quote.

Collecting debts is one of the most difficult parts of running a business, especially a small business. Cash flow is important for a company’s vitality. When customers don’t pay, the negative drain on a business’s finances can spill over into other areas, restricting growth and potentially delivering a fatal blow to a struggling company. One of the scariest parts of collecting debts is navigating the bankruptcy process once a business is notified about a debtor’s bankruptcy filing. Part of this process involves understanding the difference between Chapter 7 and Chapter 11 — two of the three main bankruptcy proceedings that can come into play in debt collection.

Understanding how bankruptcy works

Bankruptcy is a legal proceeding to eliminate, modify, and manage debt. In most cases, a debtor (someone who owes money to another) voluntarily files bankruptcy to obtain protection in the debt collection process. Bankruptcy filings can also be involuntary where creditors request that a person or business enter a bankruptcy proceeding, but this is relatively rare. This component, however, illustrates how bankruptcy is not necessarily a bad thing for creditors, as a bankruptcy proceeding can provide the structure for repayment of debts in many cases. The key to understanding how the bankruptcy of a debtor affects your business is knowing the purpose of different bankruptcy chapters.

Chapter 7: Liquidation

Chapter 7 bankruptcies are liquidations. That means that the purpose is to get a fresh start for the debtor. Chapter 7 involves selling all of a debtor’s non-exempt property (things that a debtor is allowed to keep during insolvency). The sales proceeds go towards paying off debts, following a priority system established in a combination of federal and state laws. If the debtor is an individual (and not a business), there is a system of qualification for filing that must be completed. This “means testing” is intended to weed out individuals who might not understand the bankruptcy process or those who have sufficient assets to pay some or all of their debts.

For individual debtors, it’s common to see filings under either Chapter 7 or 13 of the Bankruptcy Code. Unlike Chapter 7, which is intended to zero-out all “dischargeable” debt, a chapter 13 filing anticipates a repayment plan. Sometimes chapter 13 filings are referred to as “wage-earner” bankruptcies, with the idea that a debtor has gotten in over their head in debt, but need assistance restructuring the debt to allow for the repayment of some or all of the obligations.

If a debtor is a business, chapter 7 is a path for dissolving the business entity and discharging obligations. But, sometimes a business debtor, or an individual who operates a business, might want to keep the business going while restructuring debt. Another chapter of the bankruptcy code permits this course of action.

Chapter 11 Bankruptcy: Reorganization of Business Debt

Chapter 11 is generally the path for business debtors to obtain relief from certain debts, while continuing to operate their business. Chapter 11 often involves a corporation, partnership, or other business entity as the debtor, but an individual can also use this chapter to propose a plan of reorganization to keep a business alive while paying creditors over time. Under chapter 7, certain non-exempt property becomes the property of a trustee for liquidation purposes. For example, if an individual files for protection under chapter 7 while having a large sum of cash reserves in the bank, such as $10,000, the bankruptcy trustee will take control of the cash and distribute it to creditors. Under chapter 11, the debtor becomes a “debtor in possession” and owns and manages assets of the business, much as a trustee would.

How Creditors Should Proceed

If your business received notification that a customer or other party that owes your business money is the subject of a bankruptcy proceeding under chapters 7 or 11, there are a few key steps for ensuring that you are protected to the fullest extent of the law. The notification will usually be in the form of a notice of filing received in the mail. It is crucial to know that bankruptcy filing creates an “automatic stay.” This is a legal concept that halts collection most collection activities directed at a debtor. It will stop, at least temporarily, your ability to collect. If you are suing a debtor in state court, your lawsuit will be halted. The automatic stay happens immediately upon filing, so even if you don’t yet know about the filing, it may affect your activities regarding the debt.

Because of the automatic stay and potential liabilities for violating it, businesses should consult with legal counsel about how to proceed in the bankruptcy action. There are methods for lifting the stay, such as in the case of enforcing certain liens, such as a mortgage lien.

It is important for a business to make sure it can substantiate the amount owed, as documentation and payment records may be scrutinized in bankruptcy court. Creditors are also allowed to obtain information directly from the debtor in a meeting, called the meeting of creditors, where the debtor must appear. While many creditors skip attending these meetings, it can be a source of information on how to best get paid.

In addition, creditors should obtain a full copy of the bankruptcy petition. There may be information contained in the filing that is inaccurate and contradictory to your records. As a creditor, you have the ability to object to the discharge of debts under certain circumstances.

While bankruptcy may seem like a scary topic for business owners, it can light a clear path to repayment. With some understanding about the process, business creditors can quickly determine the effect of the bankruptcy filing and protect their rights.  

If you are looking for a debt Collection Agency: Contact us

Receiving payments from clients is a crucial part of creating and maintaining positive cash flow in any business. However, a business income stream can quickly get out of balance when clients – whom you’ve delivered top-notch work in a timely and professional manner – decide not to pay their invoices.

When clients cannot settle their accounts, the business makes less profit, incurs losses and may even have to raise prices to break even. If there are too many delinquent accounts, reaching your break-even point might become a struggle.

Unfortunately, when most clients are having financial trouble they most likely will not disclose this fact to the companies they are doing business with. Instead, they just refrain from paying their invoices. In this article, I’ve put together a list of 12 telltale signs that your client is under financial distress.

1. There’s no contract in place.

It is pertinent to have a contract in place when working with clients. A contract is a binding agreement that holds the client liable to pay all funds they owe a business. Furthermore, a contract is advantageous should you decide to take legal action against non-paying clients.

2. The Client wants to use checks as its sole payment method.

For a business, accepting multiple types of payments is beneficial and aids in getting paid faster. Companies should, therefore, be wary of clients who demand to use checks as their sole means of payment. Paper checks give clients who had no intention of settling their account leeway to be fraudulent since paper checks allow clients to establish their grace period or keep writing bad checks. This means that you will probably never receive your money.

3. Inconsistent payments and deadline extensions.

One of the most obvious signs that your client is having financial trouble is that their payments become inconsistent and they are constantly asking for deadline extensions. You may find that you are starting to receive only part of the payment of your invoices on one date and the remaining parts on another date. This is usually a clear sign that your client is having financial trouble.

4. The company is becoming contentious.

Healthy cash flow is what keeps every company afloat. Clients who are experiencing financial stress will do anything to survive, including becoming contentious. They might look for any excuse to not pay up or complain about your service for no reason at all. In actuality what they’re trying to do is delaying payment or even completely avoid payment to ease their financial stress.

5. Fishy contact information or becomes unreachable.

Perhaps the worst type of non-paying clients is the crooks whose intentions were to not pay you from the start. These are the types with unprofessional or spammy looking email addresses or are constantly changing numbers to become unreachable to people they owe. 

6. The checks keep bouncing and changing banks.

One surefire red flag is when clients keep changing banks, and their checks keep bouncing. It is not unheard of that a check sent by a client bounced or that they switched bank once in a while, however, if that keeps occurring it is a good indication that they are in financial trouble and cannot settle the account.

7. No accounts payable contact person or department.

If your client is a solopreneur or small business, they probably don’t have an accounts payable department. This can be a concern since your bill can become a low priority to them. It is therefore always best to make sure you’re dealing with a real company that will not sway from paying their bills on time by having an ironclad contract on hand.

8. Profits are plummeting or layoffs.

For a company to survive long term, it needs to be profitable, thus you need to keep a watchful eye on your client’s profit margin. This can be difficult to spot, but one surefire way to tell is if the company is constantly laying off staff. You can also look for other evidence such as the profit-margin ratios of what might be happening to profits to get a glimpse of your client’s profit margin.

9. Declining reputation or a bad news/scandal in the company.

How many big names and long-established businesses have we’ve seen fall because of a bad reputation, continuing bad press or a damning scandal in the company. Nowadays people no longer share their displeasure with a customer service department; they vent on social media for thousands to see. Bad press and scandals will tremendously affect a company’s reputation. As a result market shares can decline, which will lead to financial difficulties and the increased risk that they won’t be able to pay invoices on time.

10. Making repeated and inconsistent excuses

If you have a client that repeatedly makes excuses and is constantly asking to extend the deadline, then there’s a good chance that they’re experiencing financial troubles. It is best to stop working with this client immediately.

Key points to keep in mind to ensure that your invoices are paid

To ensure that your invoices are paid, there are three key points you should keep in mind at all times:

1. Be selective about your clients: before you start working with a client, it is always best to do a background check to spare yourself the unnecessary headache if it turns out that the client is experiencing financial distress.
2. Always request a percentage upfront: One way to vet your clients is by requesting to receive a percentage of the payment upfront. Most companies that are financially stable won’t object to this request.
3. Take legal action: If all else fails and your client still turns out to dodge what they owe you, You can always take legal action.

Conclusion:

When working with clients, your priority is to get paid as much as you can as quickly as possible. Check the above-mentioned list to find out if a company is experiencing financial trouble or not. Remember, sometimes, taking a reduced amount now could be a better option than hanging on for full payment later, which never arrives.

Accounts receivables (AR) are the lifeblood of your company. They are the positive end of the cash flow cycle and are necessary for paying bills, salaries, and your own creditors.  It also tends to be one of the largest assets a company owns.

Managing your AR effectively can help smooth out your finances and keep your company healthy and growing. However, there are a number of issues that can prevent your accounting department from collecting outstanding receivables properly.

The overarching problem that all AR teams face is accounts that don’t pay on time or don’t pay at all. But this is frequently a symptom of more specific, underlying problems in the management of your accounts receivables. Fixing these common problems will often lead to more consistent payments.

When attempting to fix any of the problems below, it’s important to remember that any solution must be applied consistently in order to be effective. Selectively applying policies or only following best practices when it’s convenient is a surefire way to fail.

Collecting On Invoices Takes Too Much Time

If your AR management team finds they spend too much time chasing down customers and helping them make payments, you may have a couple of issues that can be improved.

For one, it’s possible that you aren’t offering enough ways for your customers to pay you. If the limited payment methods you accept don’t align with the ways your customers want to pay, you’re certain to encounter problems.

So make sure you offer the full complement of payment methods available today, including credit cards, checks, direct bank account debits, digital services like PayPal, and mobile payment apps like Venmo.

You also want to collect payments digitally, and automatically, so that your AR teams don’t need to be involved. Embedding payment options directly inside of a digital invoice is the best way to handle this. Additionally, this makes things simple for your customers, which increases the speed with which they’ll pay.

Customers Complain They Aren’t Given Enough Time

Many companies pay their invoices at specific times each month. If they pay twice a month, they might choose the 15th and the end of the month. Payments made once a month could fall at the beginning, middle or end, and this date can be different from customer to customer.

The problem faced here is that your invoice releases may not align well with their schedule. Your terms might be Net 30, but if you send an invoice on the 20th and the customer pays at the end of the month, they may feel they only have ten days to pay you. If they opt to pay you at the end of the next month, they’ll wind up paying late. You may even decide to impose a late fee.

While it’s unreasonable for customers to think you can sync your invoices to their preferred payment window, you can help them by sending out invoices as soon as possible. Accounting software will generally help you automate the creation and sending of invoices, but you can also create an internal process that generates the invoice immediately upon delivery of the product or service.

Sending invoices digitally helps this situation by making invoices quicker and easier to submit and it saves them time, rather than waiting for the postal mail to arrive.

Getting Payments and Invoices to Match is Time Consuming

If you’re still manually matching payments to invoices, you’re wasting a lot of effort. Most advanced accounting packages can handle this labor-intensive task for you

Particularly when you invoice digitally and include direct access to a payment portal, you can control the flow of information between the payment source and your accounting software. This can help assure that each payment that’s made is tied to a specific invoice number for easy matching.

If you aren’t ready to automate your process digitally, there are still steps you can take. Make certain that every customer has a unique customer ID and tie that ID into your invoicing system, creating an invoice number for each invoice you send. Your invoice number might include the year, the client ID, and then a string of numbers that increments by one with each invoice. For example, the first invoice for your customer ABC Tech might read, 19ABC0001.

Make sure that clients include that invoice number with any payments they make. You’ll be able to immediately identify the account the payment belongs to and track down the matching invoice.

Invoices Missing Information

Some large companies require specific pieces of information on the invoices they receive, and when it’s missing or misformatted, payment delays can result.

For small businesses, it can be extremely challenging to generate custom invoices this way. Not only is it difficult to remember the specifics for each invoice version, but it’s also hard to keep multiple versions of your invoices on hand.

Invoicing software is the best way to solve this problem. You can create invoice templates that are specific to each customer that requires custom invoices. This way you do the work once and then rely on the software to keep everything straight for you.

Invoices Aren’t Getting to the Right People

Employees come and go. Businesses move locations. Departments shift between offices. Over time, the people, places and email addresses you’re sending your invoices to may change, and invoices that once got paid quickly might stop getting paid at all.

Using a CRM package to keep track of all of your customers can be a good way to make certain your contact information is kept up to date. These have tools built-in to help you keep up with the right decision-makers and billing contacts for each company you do business with.

Delinquent Accounts

No matter how good your invoicing practices are, some customers will always pay late. It’s likely that they’re exercising cash flow management on their end. But they might also be serious defaulters. The best way to deal with these customers is to build reminder automation into your collections process.

Either schedule reminder letters to be sent for each invoice you send, or better, create rules in your accounting software to send these letters at regular intervals for you. You can sculpt the language of the letters ahead of time. Just make certain that the reminders start out friendly and get progressively more demanding with each iteration. At some point, you need to decide whether severing the relationship with your client is better than the loss that they are causing. Always involve a debt collection agency if your bills are 90 days past due and recover money in a legal complaint way.

Phone calls are certainly warranted if an invoice becomes significantly overdue, but the more that you can leave your collections to your software, the more time you’ll have to solve other AR problems you’re facing.

If you need a Collection Agency to help you recover money from overdue accounts: Contact us