Process service isn’t always a part of the debt recovery process, but it can prove to be an important one should a collection case escalate to legal action. In fact, businesses are currently spending around $46 billion annually on process services with the number projected to hit $128 billion by 2030.
The debt recovery process itself begins when a creditor decides that a debt is owed. The creditor will then attempt to collect the debt from the debtor, usually through phone calls, letters, or personal visits. If the debtor does not respond to the creditor’s attempts to collect the debt, the creditor may hire a debt collection agency.
The agency will then attempt to collect the debt. In some cases and with certain types of debt, the process service may become necessary. In this brief guide, we explain how it works and discuss the benefits to your business.
Process Service in a nutshell
A process server is someone who delivers (or “serves”) legal documents to a person or business. These documents might be a summons, complaint, subpoena, or other types of legal notice.
The process server must follow the rules set out by the court where the case is being heard, which might include personal delivery or posting the documents in a public place. In some cases, the process server might need to take additional steps, such as trying to serve the papers multiple times or finding an alternate way to contact the person being served.
Process service is an important part of the legal system, and it helps ensure that people receive notice of any legal proceedings that might affect them.
How does process service benefit businesses?
When businesses are subject to lawsuits, the process server delivers the summons and complaint to the company’s registered agent. The process server is then able to file a proof of service. This serves as evidence that the company was properly served with the lawsuit, allowing the case to move forward in court.
Process servers ensure that businesses are aware of lawsuits against them in a timely manner. The process allows businesses to respond to lawsuits in a timely and efficient manner. It also protects one from having their assets seized by the court if they fail to respond to a lawsuit.
If you are expecting payment from someone and they do not pay you, you may hire a process server. A process server is somebody who ensures the person who owes you money gets the documents they need in order to make their payment. The process server will hand-deliver these documents to the person who owes you money.
This way, you can be sure that the person has received them and that they cannot say they were never notified of the debt. In addition, if the person does not pay after being served, you may have a better case in court. Therefore, hiring a process server can benefit you by ensuring that the person who owes you money receives the notification of their debt and by providing evidence that may be useful in court.
What are the costs associated with process service?
The cost of process service can vary depending on the complexity of the case. By “complexity of the case,” we mean how difficult it is to find the person being served or if there are legal challenges that need to be addressed before service can take place.
For example, if the person being served has moved and their new address is unknown, the process server will need to conduct a skip trace in order to locate them. This can add to the cost of the service. In general, however, businesses should expect to pay anywhere from $75 to $250 for process service.
How do you choose a process server?
There are plenty of process servers to choose from but not all are created in the same mold. When choosing a process server, businesses should consider the following factors:
- The process server’s experience and success rate
- Whether the process server is licensed and insured
- The process server’s fees
- The process server’s geographical coverage area
Of course, going this route is a pretty strong indicator that legal action is inevitable. Before it gets to that point, you should consider the intervention of a debt recovery service.
Southwest Recovery Services has helped many clients avoid the legal headaches that come after process service. They do it by enacting collection practices that get results, getting you paid with greater speed and reliability. Contact us today with any questions you may have or to learn more about what the process entails.