The wave of business bankruptcies that seemed inevitable in March and April has not materialized yet. Some companies that were wrestling with debt and cash flow problems before the pandemic struck did file for bankruptcy, but other businesses have managed to use federal assistance, other available cash, and a rebound in business to avoid completely...
Month: July 2020
Knowing when to seek a receivership
Many California businesses are struggling right now. When a company that owes you money faces serious trouble, it’s not good news for you and your prospects of collection. You have many different options for pursuing the unpaid debt, but what is the best option for maximizing your return? In some cases, a receivership is the right answer, but courts see...
3 questions to ask when pursuing California debt collection
Wouldn't it be great if everyone paid their debts in full and on time? Unfortunately, wishful thinking gets us nowhere when it comes to keeping a business in the black. What does move us forward is making wise decisions based on the best information available. Knowing which debts are likely to be paid and therefore worth pursuing takes experience,...
How businesses can collect debts from other businesses
Ideally, when a business sells goods or services to other companies, they will have protocols in place in case a corporate client fails to pay for those goods or services in a timely manner. For instance, an organization may decide that it will wait 30 days to receive payment before it sends a demand letter to a client. A demand letter will make clear that...
When is someone liable for their spouse’s debt?
Collecting a debt from someone other than the debtor can be tricky, but certain circumstances do allow for it. The law has long recognized the responsibility spouses may have for each other’s debts, going all the way back to English common law. The Doctrine of Necessaries states that spouses are liable for each other’s debts if that debt covered...