Commercial debt collection is very different from consumer debt collection. The laws governing collection of a consumer debt do not apply to business debts. It is essential to understand the steps you need to take to collect on a business debt so that you can handle overdue bills properly in New York.

Business.com explains the first step to take is demanding payment. You need to let the debtor know he or she must pay you now because the bill is overdue. If done right, you can often end your collection efforts here because your debtor will pay. The letter should give them a chance to respond if they want to deny the debt or figure out an alternative way to pay the debt.

If the demand letter fails to get any action towards the payment of the debt, you can then begin doing some investigation into your debtor. You have a lot of freedom here because the laws are not restrictive like they are with consumer debts. You can uncover assets and information that you can then use to take the debtor to court to get a judgement against him or her for payment. During the investigation of the debtor, you want to uncover ways for the debtor to pay you. Ideally, you will discover sellable assets or funds that you can then ask the court to require the debtor to use to pay you.

The final step is going to court. If you have a contract and proof of the debt, the court should rule in your favor and demand the debtor pay you. This information is for education and is not legal advice.