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,...
Commercial Debt Collection
When a business owner uses an LLC to avoid financial liability
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...
When can wage garnishment help with debt collection?
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...
Gifts may allow debtors to avoid their obligations
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....
3 ways a receivership can benefit a commercial creditor
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...
Can an LLC owner be held accountable for business debt?
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...
Alternative service options when a debtor returns their mail
Most people make every reasonable attempt they can to fulfill their financial obligations. Someone who takes a loan from a business or has payment arrangements for unexpected expenses may work diligently to keep their financial accounts in good standing. Unfortunately, there are also people who do not feel any sort of financial responsibility to others....
Enforcing a judgment originally obtained in a sister state
Some companies attempting to collect on debts have a relatively straightforward process ahead of them. The people or businesses who owe money follow a payment plan and consistently reduce what they owe by sending monthly payments. Other times, creditors may have a very difficult time collecting on a debt. Some people go to extreme lengths in an attempt to...
Can debtors use trusts to avoid their obligations to a business?
Most people are eager to make good on their financial obligations. They communicate with their creditors, follow payment plans and provide advance notice if they might miss a payment or send a payment in late. Unfortunately, there are some people who take on debt without a sincere intent to fulfill their financial obligations. People sometimes try to avoid...
How can a bank levy facilitate collection efforts?
For some companies, collecting what they’re due proves to be a challenge of patience and sometimes logistics. In some cases, they have to turn to the courts to order payments. Enforcement of these orders may involve methods such as bank levies and garnishments. A garnishment is a court order for a certain portion of future deposits to be sent to the...