Taking Collections to Small Claims Court

Sometimes it is necessary to take legal action to collect a debt. In some instances, small claims court may offer the most reliable and efficient means to resolve a collection matter. In order to be successful in small claims court you must be well prepared. The following information will help you understand the steps and requirements of a small claims court hearing. If you need assistance call your LegalShield provider law firm today.

• Exhaust your alternatives. Make an effort to collect the debt before going to court. As a LegalShield small business member, your benefits include collection letters written on your behalf by your provider law firm. You may also consider working out a payment plan or other alternatives. To learn more review our previous article on small business debt collection.
  
  
• Know the maximum amount you can collect in small claims court. States have varying thresholds for what amounts can be disputed in small claims court. For instance, in Virginia claims may not exceed $5,000, while in California they may not exceed $10,000. Talk to your LegalShield provider law firm about the laws that govern small claims court in your state.
  
  
• File the correct paperwork. It is important to file the right paperwork in order to receive a court date for your matter. Find out the statutes of limitation for collecting debt in your state and make sure you file in a timely manner. Discuss the process with your LegalShield provider attorney to make sure you understand the necessary procedures to bring your matter before the court.
  
  
• Know who will need to appear in court. Some states do not require the business owner to appear in court and may allow you to send an employee on behalf of the company. In such cases, it is important to send someone with first-hand knowledge of the matter, such as a bookkeeper or manager, who dealt directly with the customer. Speak with your LegalShield provider attorney to learn more about the laws in your state.
  
  
• Compile and organize your evidence. The quality and accuracy of your documentation may make all the difference in court. A payment policy or contract, signed by the customer, will help your case. In addition, you should have copies of invoices, past due notices, or any other correspondence you sent to the other party.
  
  
• Prepare and rehearse your argument prior to court. Part of being prepared for court involves knowing what to expect and how to properly present your argument. Your LegalShield provider law firm can help explain what to expect and what information may be most important in court. Call and speak with an attorney today if you have any questions about small claims court or need assistance collecting a debt.

8 Ways to Stay in Business After a Disaster

It is estimated that 25 percent of businesses fail to reopen after a major disaster. Developing a solid recovery plan will give your business a chance to bounce back. There are additional steps you must take to ensure your plan is effective. You will need to evaluate your insurance coverage and train employees before disaster strikes. The following information will help you create the right plan for your business. If you need assistance preparing for or recovering from a disaster call your LegalShield provider law firm.

1. Understand the most common threats to your business. Many disasters are difficult to predict but you are probably more likely to encounter certain types of disasters based on where you live. For example, if you run an online business you may be more likely to experience a data loss or cyber extortion. If you live in a coastal region you may be more likely to face a major storm or flood damage. Consider the types of disasters you may face and take particular care in how to protect your business and recover your business.
   
   
2. Develop a disaster recovery plan. Your first priority is the safety of customers and employees. Your plan should include evacuation or shelter-in-place guidelines in the event of a disaster. You should develop a plan for communicating with employees, customers and vendors during and after a disaster. You will also need to identify your critical business functions and set a plan for getting them back online. Your plan should be a path towards temporary short-term recovery and ultimately sustained long-term recovery. Keep copies of the plan, both physical and electronic, in multiple locations. Review and revise your plan every year or whenever your business undergoes major changes.
   
   
3. Train employees on your disaster plan. Your plan is useless if your employees do not know what to do. Everyone in your business should understand his or her role in the recovery process. Train all new employees and periodically review procedures with existing staff. Personally manage the most vital recovery aspects or assign them to your most trusted employees.
   
   
4. Familiarize yourself with IT threats and back up your business data. Read our previous article “Are You Ready for a Cyber-Attack?” to learn more about the threat of a cyber-attack and how to prepare. Use offsite computer backup and storage to make sure all of your vital data is recoverable in the event of a cyber-attack or natural disaster. Keeping your data in only one location is asking for trouble. Offsite cloud backup allows you to easily retrieve your data if your main office or data storage is destroyed.
   
   
5. Evaluate your business insurance. Not all business insurance covers natural disasters and some types of coverage can be prohibitively expensive. It is important to consider the needs of your business and the likelihood of a disaster affecting your business. You may also consider purchasing data breach insurance, which may provide coverage if your business is hacked or your systems are sabotaged. The loss of client data could be a public relations nightmare and may lead to fines or expensive litigation.
   
   
6. Review your lease and talk to your landlord. If your business rents office or retail space it is important to understand the responsibilities of the landlord and their plan for recovering from a disaster.
   
   
7. Talk to your vendors. Without key vendors many businesses would quickly sink. You should keep an open line of communication with your vendors and understand their own disaster recovery plan.
   
   
8. Make sure you have access to the necessary capital to recover. Many businesses fail after a disaster because they do not have the money to make it through even a brief shutdown. If your business needs assistance after a disaster you may be eligible for a short-term low interest business recovery loan. Learn more about disaster recovery loans by visiting the Small Business Administration website.