The role of a forensic accountant in difficult collection cases

The role of a forensic accountant in difficult collection cases

On Behalf of | Aug 5, 2021 | Consumer Debt Collection

An individual owes your business a significant amount of money. Despite having a job, a vehicle and a house, they claim that they simply cannot make payments on what they owe you and default on the debt.

Maybe they even try to file for bankruptcy to keep you from suing them or move some of their assets to a different form of ownership. People often try to move assets into trusts or offshore accounts, for example, to make it harder for companies to collect on valid debts.

Companies faced with customers willing to take extreme measures to avoid paying on their financial responsibilities may themselves need to take drastic steps to get payment for those debts. Hiring an outside professional could help you get the proof you need to demand repayment.

The right professional can help you prove financial misconduct

People often try to manipulate the financial system for their own benefit. They may take out large loans and use up all of their available credit, make payments for enough months to make it seem like they had good intentions, then abruptly stopped making payments. They might transfer assets out of their name to preserve them for their children while effectively denying you fair and appropriate repayment.

A forensic accountant is a financial professional skilled at tracking assets and determining how people use and move their financial assets. If you suspect that someone has engaged in fraudulent transfers to avoid their obligations to your business, a forensic accountant could create a clear record of their questionable financial practices and make it easier for you to take a recalcitrant debtor to court.

Working with the right professionals can make it easier for you to collect on consumer debts when people try to avoid paying you what they owe.