2018 is coming to an end and you know what that means – time to clear your books!
Anyone in collections knows this time of year is spent negotiating settlements and determining which accounts need to be written-off as bad debt. With settlements including security and different sources of recovery, it’s important to only release the parties you are settling with and only for the amount they are paying.
For example, you may have a mechanic’s lien on owner XYZ’s property for $10,000.00. Your debtor/customer is ABC. You accept XYZ’s offer to settle the lien for $8,000.00. In the settlement agreement it should state that the mechanic’s lien settles for $8,000.00 and releases XYZ only, allowing you to pursue ABC for the remaining $2,000.00 balance.
Didn’t secure mechanic’s lien rights or file a UCC? Don’t worry! The NCS team can also help you recover unsecured obligations. With our wide breadth of service and customized solutions, there is no reason to let bad debt fill your books. Call NCS today at 800-826-5256 or email us at email@example.com.