Most people who borrow money or sign financial agreements will eventually make good on their obligations. They will make monthly payments until they have fully covered the balance owed and will do their best to keep their accounts in good standing. However, there are always a few people willing to break the rules and take advantage of a system even if it...
When one business or individual owes money to another party, they may fail to follow through on their obligations for a variety of reasons. Sometimes, a debtor falls behind because of a budgetary shortfall. Other times, they may have engaged in fraud by entering into an agreement that they had no intention of honoring. Whether due to extenuating...
There are numerous laws restricting the activity of debt collection professionals. In general, both professional collection specialists and those pursuing internal collections for a business must carefully comply with federal and state rules about fair debt collection practices. Many of those rules aim to curtail abuses, like harassment, that can cause a...
Creditors in California that are owed money by individuals who seem eager to avoid their responsibilities have options. While both state and federal law regulate collection efforts in an attempt to prevent abuses, the laws intended to protect consumers often put businesses owed money by individuals at a legal disadvantage. However, these organizations have...
Most individuals who take on personal debt are responsible for their financial obligations. They make timely payments and communicate if something occurs that will result in a late or missed payment so that creditors don't feel the need to engage in immediate collection activity. Unfortunately, there are also a few people who attempt to engage in...
The legal system is designed so that different courts have different jurisdictions. Generally speaking, those who wish to take legal action against a debtor must file papers in the jurisdiction where the debtor owns assets. For example, they may reside in New Mexico, but most of the debtor's assets could be investments located in California. So, suppose...
Creditors have to jump through many legal hoops to collect money from debtors. Even after winning a judgment, they still have to collect their debt, often taking further legal steps. Many debtors are well aware of the process and do their best to avoid paying. One misdirection they sometimes use is hiding assets under an alter-ego, pseudonym or related...
Sometimes it is necessary to take legal action to collect debts from a business. Still, even when the courts rule in favor of the plaintiff, the creditor is responsible for collecting the debt owed to them. Garnishing income from a business is one option, but it is also possible for the creditor to garnish non-wage assets. Assuming that the asset is...
People hear the words "business asset" and immediately think of money, real property, products, and other things of value that physically exist. On the other hand, intangible assets also add value to the company but instead involve such concepts as agreements, reputation, goodwill, non-competes, patents and copyrights. These can be hard to put a value on,...
Generally speaking, a debt is only gone when the debtor pays it. Still, California does have a four-year window in which the creditor can take legal action to enforce a valid written contract. However, the clock on the four-year limit can restart each time a debtor makes a partial payment – a partial payment or acknowledging the debt after the four-year...