Promissory notes are legally binding contracts that can hold up in court if the terms of borrowing and repayment are signed and follow applicable laws. Important details to include are: The amount of money borrowed Who borrowed the money The date the sum was borrowed The loan’s interest rate (if any, and make sure it is not usurious) The recipient of the...
Collections
Calculating the correct amount owed on a judgment is crucial
Determining a precise amount owed on a judgment is a vital part of the collection process. If the amount is incorrect, the court will not issue a writ of execution, which is required to levy on the debtor's assets. And if the court accidentally issues the writ or levy for an incorrect amount, the debtor could seek to quash it. Interest is the issue The...
Third-party collections is an option for some creditors
It is common to hear that a debtor does not have the money to pay a creditor. They may go to court and say it. They may tell the creditor or anyone else, claiming that business is slow or that they are overextended. Of course, this is not what the creditor wants to hear. But during that conversation, the debtor may say they are also owed money and...
A writ of execution initiates the court-mandated collection
The law provides several options for creditors intent on collecting a debt. The creditor trying to collect a debt will file a lawsuit with the court. If the court agrees with the plaintiff, it will issue a writ of execution to the judgment creditor, which allows them the legal right to collect money to satisfy a debt owed to them. Once the judgment...
The 6 steps that lead to judgment satisfaction
Many assume that winning their court case is the story's end. The debtor pays the winner whatever the judge or jury decides the damages are, and everyone moves on. Unfortunately, it is often more complex than that. Just because there is a judgment doesn't mean that the debtor will pay the cash they owe. Moreover, it is up to the winner to collect their...
What is a keeper attachment?
Collecting debts are rarely easy, even if it is from another business. Fortunately, creditors have different attachments to lay a legal claim to a debtor's assets that are equal to the value of the debt. It can be a provisional remedy that prevents the judgment debtor from liquidating or transferring an asset beyond the reach of the judgment creditor or...
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...