California businesses often have the unenviable task of taking a client or customer to court in order to receive payment owed to them. Receiving a judgment from the court specifying the amount owed to a particular business from another party may seem like a victory, but there is still more work to be done. Collecting on that judgment may require using a...
Collections
Obtaining a wage garnishment for payment of a judgment
After receiving a judgment from a California court against someone who owes your business, you need to decide where to go from here. Enforcing a judgment can prove just as problematic as securing one. One option you may use to collect the money owed to you in connection with the judgment is through a wage garnishment. The process seems simple. You use the...
Collecting from a business that has filed for bankruptcy
Few things are more frustrating than having a business owe you money only for the company to file for bankruptcy. You may have done everything in your power to recover your financials. Unfortunately, bankruptcy protection can limit your options going forward. However, that doesn’t mean you have no recourse. You will have to file a claim When a business...
Debt collection varies depending on if it is secured or unsecured
Perhaps a California business owner has attempted to receive payment from a customer by sending additional invoices and making calls, but to no avail. It has now reached the point where debt collection efforts need to become more formal. Before embarking on a particular course of action, it would help to know whether the debt is secured or unsecured. As...
When does filing a lawsuit against a debtor make sense?
As a small business owner, unpaid debts can affect your bottom line. While some of your debtors may make good on their payments, you may have difficulty receiving any repayment whatsoever from others. Before filing a lawsuit against a debtor, however, it’s crucial to know if they can afford to pay you. If they cannot, pursuing legal action against them...
What options do you have for debt collection lawsuits and enforcement?
Effective debt collection practices by commercial entities include the use of civil court cases brought against consumers and other businesses. Efiling of civil actions is the norm in California courts, as has been the case in recent years. When the usual debt collection efforts have failed to result in payment, aggressive legal actions become essential...
Using writs to collect commercial debt
The wave of business bankruptcies that seemed inevitable in March and April has not materialized yet. Some companies that were wrestling with debt and cash flow problems before the pandemic struck did file for bankruptcy, but other businesses have managed to use federal assistance, other available cash, and a rebound in business to avoid completely...
Knowing when to seek a receivership
Many California businesses are struggling right now. When a company that owes you money faces serious trouble, it’s not good news for you and your prospects of collection. You have many different options for pursuing the unpaid debt, but what is the best option for maximizing your return? In some cases, a receivership is the right answer, but courts see...
3 questions to ask when pursuing California debt collection
Wouldn't it be great if everyone paid their debts in full and on time? Unfortunately, wishful thinking gets us nowhere when it comes to keeping a business in the black. What does move us forward is making wise decisions based on the best information available. Knowing which debts are likely to be paid and therefore worth pursuing takes experience,...
When is someone liable for their spouse’s debt?
Collecting a debt from someone other than the debtor can be tricky, but certain circumstances do allow for it. The law has long recognized the responsibility spouses may have for each other’s debts, going all the way back to English common law. The Doctrine of Necessaries states that spouses are liable for each other’s debts if that debt covered...