You’ve gone through all of the proper steps for collecting what your debtor owes you. You’ve tracked down their assets, demanded payment, brought a lawsuit, and obtained a judgment from the court against the debtor for the amount that they owe you. Even after all of that, they still haven’t repaid the debt that they contracted with you for. At this point,...
Collections
Forensic accountants: the secret weapon of debt collectors
Debtors are nothing if not clever when it comes to hiding assets. As any creditor or debt collector can tell you, discovering hidden assets and collecting outstanding accounts is not easy. If you suspect that a debtor has taken measures to avoid repayment by using fraudulent transfers, hiding assets in an LLC or other means, you will need more than just...
How can I collect if all of the debtor’s assets are in a trust?
Debtors have tried everything under the sun to try to hide and protect their assets from the people that they owe money to. Most of these methods fail – such as when they try to give away assets to avoid collection. Other times, the situation becomes a bit more complex, such as when the debtor’s assets are all in the name of a trust rather than in their...
What happens when a debtor moves assets out of state?
When an individual or business owes your company money, you may need to compel them to pay by engaging in collection activity. Sending letters and calling can help but may not result in the complete repayment of the debt. When standard collection tactics don't work, you may need to take the debtor to court. If you can show that the debt is valid, the...
Can you collect if a business has no cash on hand?
Your company loans money to a small business, which then fails to pay it back. When you ask for payment on that debt, they claim they have no cash and couldn’t even pay if they wanted to. Are you still able to collect? First of all, if you’re considering legal action and a lawsuit, remember that winning the suit doesn’t hinge on whether or not the company...
You can find hidden assets and correct fraudulent transfers
As a business owner, it can be extremely frustrating when you cannot get paid for the work that you’ve done or the services you’ve provided. Seeing someone take from you without being willing to pay what’s owed is hurtful and harms your business. Sometimes, it’s possible to seek out compensation through a judgment. The other party may show up to court to...
4 ways people may attempt to hide assets when facing collections
If someone owes you money and you’re trying to collect, it’s already a frustrating situation. If they would have just paid like they agreed to do, this whole situation could have been avoided. But they haven’t paid, and now you have to try to actively seek that money. Worse yet, you believe that they could pay. It’s not an issue of not having the assets...
Piercing the corporate veil can help you collect on debts
One of the benefits of starting a corporation or LLC is that the business entity protects the owner(s) from any personal liability. If the business fails, if it faces a major lawsuit or if it accrues substantial debt, the company and not the person who runs the business will be financially responsible. While this system protects people from major losses...
How can I recover debt from assets held in an LLC?
If a Limited Liability Company (LLC) owes your client money, it will be hard to seek payment from the owner’s personal assets. Yet, it can also work the other way around. If someone has personal debt, they may still have assets in their LLC, which they think you cannot touch. They are, in part, correct, but not entirely. What is a charging order? Let’s say...
How to collect a debt from assets hidden overseas
One tactic debtors may use to try and keep their assets out of the reach of their creditors is to move them overseas. Their thinking is that once the money crosses an international border, you cannot touch it as a creditor. You may wonder if there's some validity to that logic. Tracking down assets hidden overseas can be challenging. Yet, with enough time...