A: The most important time in collecting an account from the debtor is the initial contact. The initial contact can be by client or client's credit department after it is clear that the account is in default and initial attempts are being made to collect the account or when the account is turned over to our office and we are making the initial contact with the debtor. It is important at that time to engage the debtor in conversation and obtain as much information from the debtor as possible. The debtor will always want to justify why the account has not been paid to that point and will provide substantial information that may be very helpful in the future collection of the account. Often you will be able to obtain some type of proposal from the debtor. Even if the proposal may not be acceptable it is helpful to try to solicit a good faith payment from the debtor with the representation that the matter will be reviewed and a final determination will be made shortly. Always emphasize the fact that good faith payment will weigh in the debtor's favor in any consideration given to any type of payment arrangement. 

Often the debtor will give substantial information regarding his financial situation, including assets and liabilities, and maybe even banking connections even if you are unable to obtain a good faith payment. All of this information will go a long way in collecting the account if suitable arrangements cannot be made at the time of the initial contact. If the debtor does not follow through payment and further contacts are necessary, or the matter has to be placed for collection, the ability to obtain helpful information begins to diminish. 

When I make my first contact with the debtor upon receiving the matter in our office for collection, I often advise the debtor that we have been retained to commence legal action against them but I am contacting them first to see if there is some way we can work out some sort of an arrangement to avoid legal action. I put the onus on the debtor to make a proposal that will be acceptable to our client. Even though I am pushing the debtor for payment and in essence threatening legal action, I try to give the impression that I am willing to work with the debtor to come up with a plan that would be acceptable to our client. If he does make a proposal I apprise the debtor that it is necessary to obtain a significant amount of information in order to be able to make a reasonable recommendation to our client. Again, this is the time when substantial information from the debtor may be helpful at a later date. 

You only have one chance to make an initial contact with the debtor and the trick is to use that initial contact to best aid you in collecting the account as quickly and efficiently as possible.