Chasing unpaid debts can be frustrating, time-consuming, and legally complex. Most landlords and business owners don’t want to spend their days sending demand letters or tracking down former tenants. That’s why many turn to collection agencies. But what happens when even that doesn’t work?
This is where a debt collection attorney can make all the difference.
Knowing when to involve legal counsel can help protect your interests, increase recovery, and avoid costly mistakes. Whether you manage an apartment complex, run a healthcare practice, or lease commercial space, this guide will walk you through what debt collection attorneys do, when to hire one, and how they work alongside agencies like Advanced Collection Bureau (ACB).
What Does a Debt Collection Attorney Do?
Debt collection attorneys specialize in recovering unpaid debts through legal channels. While collection agencies focus on negotiation, skip tracing, and credit reporting, attorneys can:
- File lawsuits against delinquent tenants or clients
- Represent you in court proceedings
- Obtain judgments for garnishment or liens
- Enforce court-ordered collections
They’re particularly useful when a debtor is uncooperative, disputes the debt, or has already been contacted by a collection agency with no results.
Some landlords skip straight to attorneys. Others wait until a collection agency exhausts all options. At ACB, we help our clients determine the best time to escalate a case to legal counsel.
To learn how the process typically unfolds, visit our breakdown of How to Sue a Tenant for Unpaid Rent.
When Should You Hire a Debt Collection Attorney?
You don’t need an attorney for every unpaid account. In fact, many debts can be recovered without legal action. But here are a few scenarios where hiring a debt collection attorney makes sense:
1. Large Balances at Risk
If a former tenant or client owes a significant amount—typically several thousand dollars or more—it may be worth pursuing a court judgment.
2. Stalled Collection Efforts
If your collection agency has attempted multiple strategies without success, legal action might be the only path forward.
3. Disputed Debt or Threatened Lawsuits
If the debtor contests the debt, claims they were improperly billed, or threatens to sue you, an attorney can provide the legal expertise and protection you need.
4. Business-to-Business Debt
Commercial disputes between companies can often involve contractual obligations that require an attorney’s review and court action.
To see how legal escalation fits into an overall recovery strategy, check out our article on How to Create a Comprehensive Debt Recovery Plan for Your Apartment Community.
How Collection Attorneys and Agencies Work Together
A common misconception is that you must choose between an agency and an attorney. In reality, the best approach often involves both.
At ACB, we manage the early stages of debt collection—including communication, skip tracing, and credit reporting. If a case reaches the legal threshold, we help our clients decide whether to refer the matter to an attorney—and provide all documentation to support the legal case.
This layered approach saves time, increases recovery rates, and helps you avoid prematurely incurring legal fees.
For more on how our services support property managers before legal action is needed, read The Benefits of a Proactive Approach to Apartment Debt Recovery.
What to Look for in a Debt Collection Attorney
Not all attorneys specialize in collections. Make sure your legal partner has:
- Experience in debt recovery cases
- Knowledge of landlord-tenant or commercial law, depending on your case
- A clear fee structure (flat fees, hourly billing, or contingency arrangements)
- A willingness to handle both negotiations and litigation
ACB maintains a network of trusted legal professionals and can refer you to debt collection attorneys who understand your business and your industry.
If you're considering legal help in a specific region, our blog on Debt Collection Lawyers in Texas: When to Hire One offers an in-depth regional guide.
