Some debtors seem to specialize in being an even bigger thorn in the side of their creditors. It can be a matter where they say that they will pay the money, and then after a few payments, miss one again. Or they pay less than owed but enough to string along the creditor. It may even be a matter where the creditor took the debtor to court and still has problems collecting on the judgment.
The creditor rationalizes this situation, thinking that some money is better than no money. In reality, they are deadbeats who are not meeting the terms of their financial obligation. Their money issues are your money issues, perhaps jeopardizing your business or livelihood. Patience may be a virtue, but sometimes actions are needed.
Lawyers can apply real pressure
Collections attorneys are highly adept at dealing with difficult customers. The debtor may claim they have no money or assets to cover the debt or use another excuse. Their tune will change when the sheriff’s deputy shows up at the debtor’s place of business to garnish funds. This could be to collect an ex-parte prejudgment security of vehicles, expensive equipment, or other high-value assets.
Perhaps the debtor is in a position where they are owed money; a collections attorney can file a third-party levy against the third party who owes money to your debtor. This is not always possible, but it can be a very useful tool. Your debtor’s ineffectiveness need not be yours.
Sometimes the debtor claims they have no money or assets, but in reality, they hid them. They may conceal assets in corporations or LLCs. They hide assets with family members or in secret bank accounts. They may have even closed up shop and moved to a new location.
Hold them accountable
Those tired of the runaround from a deadbeat debtor can often end it by contacting a collections attorney. California laws involving debt collection are particular but can be quite helpful for holding the deadbeat debtor accountable.