Collections

Creditors can collect from business debtors who closed up shop

Some may think that getting money from a no longer active business is like getting blood from a turnip. Nevertheless, it may still be possible to collect that money if the creditor proactively tracks down information about the debtor. Due diligence is key Before filing a lawsuit, the creditor should gather all available information on the business. For...

Appeals court rules in favor of collections

Getting payment on an overdue debt is rarely an easy task. Rather than trying to hide, they may argue that the collection violates various laws and regulations. One such example was the Hunstein v. Preferred Collection and Management Services, Inc. While our firm was not involved in this case, it illustrates how a debtor may try to fight back and avoid...

What is the statute of limitations for debt collection?

California is an expensive place to live and do business, so it is no surprise that debt and credit are a part of life. Those trying to collect debt have various legal options to be compensated. Whatever that approach is, it is essential to remember that creditors are barred from suing on unpaid written contractual debts that are four years old or older....

Effective credit applications make it easier to collect

Credit applications are a vital tool for conducting business. These legal devices enable companies to extend credit to the appropriate customers. Still, a more substantial and detailed credit application minimizes the risk and allows for collection if the customer defaults. These 5 provisions can make a difference Every credit application should include...

Do better invoices make for better collections?

It’s tough to keep your accounts balanced, especially when you have other companies and clients who don’t pay their bills. You’d really rather avoid collection actions if you can (naturally), and the best way to do that is by taking steps to minimize problems in the first place. A better invoice may help you get paid faster. What are the most common...

Is a demand letter any use in collections?

A lot of companies have trouble collecting unpaid bills, and they sometimes resort to just about anything to actually get a debtor’s attention. One of the first things they might try after an invoice has gone unpaid for a few months  – particularly if communications have become hostile – is a demand letter. What’s a demand letter, and what use is it? It’s...

Why personal guarantees can make a difference in business collections

People who run a business or handle transactions understand the importance of binding contracts. The terms outline the scope of the goods and services provided, the timing, and the cost, but it also stipulates what happens if a customer fails to pay their invoice. One aspect of a credit application may include a personal guarantee, which performs a...

Receivership can be good news for creditors

A court, government regulator, or private entity appoints a receiver as the custodian of a company or property in debt. Once a receiver is selected, the company goes into receivership. The receiver, who is paid by the entity in receivership, then runs the business or oversees an entity's property or assets. They also maximize profits and pay down debt to...