13 v2 FAQ Library Legal and Compliance

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FAQs: Legal & Compliance

The rules that apply to commercial collection. All answers will be reviewed by your attorney before publishing.

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1. Questions for Your Review

Does the FDCPA apply to commercial debt?
Generally, no. The federal Fair Debt Collection Practices Act covers consumer debts, those incurred for personal, family or household purposes. Business-to-business debts are not covered by the FDCPA, although other state and federal laws still apply, and we follow professional standards on every account.

L01 · Answers the search: “does FDCPA apply to commercial debt” · Use on: Services, Legal FAQs

What is the statute of limitations on commercial debt in Texas?
In Texas, the time limit to sue on most business debts, including unpaid invoices and open accounts, is generally four years. The clock usually starts when payment was due. Acting long before that deadline makes recovery far more likely.

L02 · Answers the search: “statute of limitations on debt in Texas” · Use on: Dallas–Fort Worth, Houston, Legal FAQs

What is the statute of limitations on commercial debt in Louisiana?
Louisiana calls the time limit "prescription." For open accounts, it is generally three years; written contracts can have longer periods. Because the rules differ from Texas, Louisiana accounts should be reviewed early.

L03 · Answers the search: “Louisiana prescription open account” · Use on: Lafayette, Legal FAQs

Can a collection agency sue a business for an unpaid invoice?
A collection agency works with licensed attorneys to file suit when other efforts don't succeed. Melton Norcross uses a nationwide network of collection attorneys and discusses every legal step with you before it's taken.

L04 · Answers the search: “can a collection agency sue a business” · Use on: Services, Litigation & Legal Forwarding

Can you collect from a business that filed for bankruptcy?
Once a business files for bankruptcy, collection activity must generally stop, and claims are handled through the bankruptcy process. Send us any bankruptcy notice right away; filing a proof of claim on time can protect your recovery.

L05 · Answers the search: “collect debt from bankrupt business” · Use on: Services, FAQs

Can you collect from the owner personally?
Usually only if the owner signed a personal guaranty or the business isn't a separate legal entity. That's why a personal guaranty on your credit application is so important. We review every account for guarantors.

L06 · Answers the search: “can you collect business debt from owner personally” · Use on: Services, Personal Guaranty article

What documents do I need to collect a commercial debt?
The most useful documents are the signed credit application, any personal guaranty, the contract or purchase orders, unpaid invoices, signed field or delivery tickets, and records of payments and communication. Our free Collections Readiness Checklist lists everything.

L07 · Answers the search: “documents needed for debt collection” · Use on: Place an Account, Checklist

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