Are you an unwilling creditor?

Are you an unwilling creditor?

On Behalf of | Mar 27, 2023 | Collections

Some businesses refuse to pay their debts. Despite having a legal obligation to pay, this business remains in operation but does not pay. From a creditor’s point of view, the debtor is using money owed to keep their business afloat.

While the debtor may justify these actions by arguing that they must stay open and earn money to repay the debt, the creditor’s objective is to get paid for their goods and services so they do not go out of business.

Taking control of assets away from them

It all boils down to two sides arguing over who controls an asset. If the debtor is unwilling to pay its debt, the creditor has the right to take action in an attempt to get their money. The creditor can file a lawsuit. If successful, they can freeze or seize the funds owed or assets equal to the amount.

The creditor can also seek a pre-judgment writ of attachment for specific assets. This ex-parte pre-judgment security freezes the asset and avoids the temptation to hide it during the pendency of the lawsuit.

Using a writ of execution to seize assets

Once the pre-judgment attachment is in place, the creditor can get a writ of execution, which directs a sheriff’s deputy to seize the frozen monies or assets. It may be:

  • Vehicles
  • Equipment
  • Inventory
  • Or other assets of value

Less talk and more action

Rather than collection services repeatedly calling the debtor in an attempt to collect money, unwilling creditors can take action by following the above steps.