There are several different ways to collect on a debt when the party who owes money isn't cooperative. In some cases, creditors can take debtors to court and can secure a judgment against them. With a judgment, it may be possible to intercept a portion of an individual's income. Wage garnishment rules allow creditors to secure payment directly from a...
Businesses trying to collect valid debts often have an uphill struggle. Those who intend to fulfill their financial responsibilities usually do so with minimal oversight. On the other hand, those trying to avoid their financial responsibilities can take extreme measures to avoid paying their debts. Companies trying to hold individuals accountable for...
Consumers who owe others money are often eager to get their accounts back into good standing. They want to avoid or at least limit the credit consequences of their debt and prevent lawsuits brought by creditors. However, there are always a few bad apples willing to take things to an extreme in their attempts to avoid personal financial responsibility. Some...
Creditors trying to collect on a debt generally try to pursue amicable solutions whenever possible. Negotiating payment arrangements and cooperating with those who have fallen behind on their obligations is often preferable to aggressive collection efforts. Unfortunately, many people with substantial debts do not make a reasonable and appropriate attempt...
Debt collection can be a challenging and lengthy process, especially when a debtor resorts to hiding assets to avoid repayment. In many cases, debtors may attempt to shield their wealth by transferring assets to family members, moving money offshore or even underreporting income. Such tactics make it difficult for creditors to identify and seize assets,...
Many small businesses fail within the first few years of operations. Entrepreneurs aspiring to start their own companies frequently try to protect themselves from financial exposure. They may do so by forming a limited liability company (LLC) instead of operating a sole proprietorship where they may have direct liability. An LLC helps minimize the...
Individuals who have a significant amount of personal debt may not prioritize paying their creditors. Frequently, frivolous spending takes priority over fulfilling obligations to other parties. That is especially true when a creditor is a business, not an individual that the debtor knows personally. People who are behind on their debts can come up with...
There are many ways for an individual debtor to avoid their financial responsibilities. Some people ignore phone calls and return mail to delay collection efforts. Others may take much more extreme steps in pursuit of limiting collection efforts. For example, someone who owes money to a business might recognize that a creditor could potentially sue them....
In many ways, lending to businesses can seem like a safer option than lending to individuals. Unfortunately, organizations can default on what they owe as easily as people might. A business that provided financing or goods and services without immediate payment in full could end up struggling to secure repayment. The strategies for collecting on a debt are...
The risks of starting a business can deter some people from pursuing self-employment. Entrepreneurs who start their own companies typically try to maintain a degree of separation between themselves and the organizations that they start. Even when only one person operates or works at a company, they can minimize personal responsibility by structuring their...