Collections

If someone owes you money and you are having a hard time collecting on the debt, knowing that person's tendencies is a good first step to a successful collection effort. Here are three common debtor profiles and a few tips for how to address the unique challenges they present. The missing person Some debtors seemingly vanish into thin air. They don't...

Collecting a debt can be a stressful task. While it is never a fun task, getting people to pay what they owe is essential to supporting the businesses you serve. When people get desperate to avoid paying a debt, they may resort to trying to hide their assets. In some cases, they will try to conceal their assets within a corporation or an LLC. Here’s what...

Collecting on past-due accounts is difficult enough without making preventable mistakes. Three things business owners and accounts receivable professionals should try to avoid include: Waiting too long In California, the statute of limitations on collecting debts is four years for breaches of written contracts. If you let that time pass without taking...

Winning a money judgment in court is oftentimes only the first battle in the longer war of collecting a debt. If the debtor still is unable or unwilling to satisfy the debt, you may need to file for an Abstract of Judgment, a legal instrument that will place a lien on any real property the debtor owns or attempts to purchase in the future. An Abstract of...

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...

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...

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...

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...

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...