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4 options for enforcing your creditor's rights

As a business owner, you may have faced situations in which a customer has failed to fully pay a bill or other debts. You may feel at a loss as to how to effectively go about obtaining the money owed to you. However, as a creditor, you have rights, and you could take advantage of numerous options available to you when it comes to a customer who owes you a debt.

Direct contact

You may wish to contact the customer directly as a first debt retrieval option. As the customer might have forgotten about a bill or other due payment, contacting the customer directly could allow you to remind him or her of the money owed. In some cases, this reminder could serve the purpose and help you gain your payment, and if not, you could use this contact to inform the debtor of your intentions to take further action.

Collection agencies

If contacting the customer yourself does not garner your desired results, you may wish to turn the debt over to a collection agency. Reliable collection agencies practice under the Fair Debt Collection Practices Act, which dictates how such companies may go about attempting to collect on a debt. This act helps to reduce the potential for abusive and harassing tactics when it comes to debt collection.


In some cases, you may feel the need to go to court over the debts owed. This option may seem particularly preferable if the debtor has filed for bankruptcy and a chance exists that debt owed to your company could face discharge. However, an involuntary bankruptcy petition may prove applicable if a considerable amount of money is owed. These proceedings - if accepted by the court - could force an individual to liquidate assets or create a repayment plan to ensure that you obtain the money owed to you.


You may also consider taking legal action in the form of filing a lawsuit. If you successfully argue your case, a judge could place a lien on applicable property belonging to the debtor. A lien may help a creditor gain reassurance that the debtor will repay the debt. Otherwise, the debtor's property may face repossession.

In order to fully understand your options to collect a debt and your rights as a creditor, you may wish to speak with a knowledgeable party regarding your case. An experienced California attorney could help you assess your predicament and determine which courses of action may prove useful to your endeavor as you work to gain owed payments.

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