When an individual or business owes your company money, you may need to compel them to pay by engaging in collection activity. Sending letters and calling can help but may not result in the complete repayment of the debt. When standard collection tactics don't work, you may need to take the debtor to court. If you can show that the debt is valid, the...
Month: September 2021
How debtors try to abuse personal bankruptcy and hurt businesses
There are numerous ways that debtors filing for bankruptcy might abuse the system with fraudulent activity. Hiding assets from creditors is a common scheme since people don't want to give up their property but still want to receive a discharge of their debts. However, it is possible for people to abuse bankruptcy proceedings in other ways. Someone...
Can you collect if a business has no cash on hand?
Your company loans money to a small business, which then fails to pay it back. When you ask for payment on that debt, they claim they have no cash and couldn’t even pay if they wanted to. Are you still able to collect? First of all, if you’re considering legal action and a lawsuit, remember that winning the suit doesn’t hinge on whether or not the company...