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....
Consumer Debt Collection
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...
Are your debtors trying to outsmart you?
There is no shortage of advice online centered around topics such as “How to outsmart your creditors” and “Tips for avoiding debt collectors.” If you are owed money, it might be helpful to know the information your debtors are accessing to keep you from getting what is yours. Following are some of the most common items of advice blogs, magazines and other...
What does a prejudgment writ of attachment do – and how can I get one?
It’s an unfortunate truth that many people refuse to pay what they owe, and some may even resort to dishonest measures in order to move the assets or money that they owe you out of your reach. In situations like these, it may be necessary to file for a prejudgment writ of attachment when you begin your collection action against them in order to provide...
Can I collect if the debtor’s assets are in retirement accounts?
Creditors who are looking to collect on consumer debt may find themselves facing unscrupulous efforts to avoid repayment. In these situations, the creditor may need to consider various ways to get the money. One example is to consider the consumer’s retirement assets. Creditors who are looking to collect payment through retirement assets must navigate both...
Can you use social media to secure delinquent debt?
Debt collectors possess vast resources when trying to get in touch with consumers who are delinquent in their debts. Even with a significant increase in debtors throughout the pandemic, various paths exist to make contact in an effort to find resolutions to past-due or outright delinquent balances. When the third quarter of 2021 ended, 77.6 million...
Can I collect if the debtor’s home is in a trust?
Anyone can use a trust to serve a number of financial goals. An individual can draft a trust to help the creator ensure beneficiaries use assets to fund higher levels of education or the management of properties. A creator can make a trust to help reduce their estate’s tax obligations or even avoid one’s financial obligations to creditors. What types of...
How debtors try to abuse personal bankruptcy and hurt businesses
There are numerous ways that debtors filing for bankruptcy might abuse the system with fraudulent activity. Hiding assets from creditors is a common scheme since people don't want to give up their property but still want to receive a discharge of their debts. However, it is possible for people to abuse bankruptcy proceedings in other ways. Someone...
The role of a forensic accountant in difficult collection cases
An individual owes your business a significant amount of money. Despite having a job, a vehicle and a house, they claim that they simply cannot make payments on what they owe you and default on the debt. Maybe they even try to file for bankruptcy to keep you from suing them or move some of their assets to a different form of ownership. People often try to...
3 kinds of debts to pursue when a debtor dies in California
What happens to people after death? No one knows for sure – but one thing is certain: if they are in debt in California at the time of their death, some of their debts will have to be paid. This is because California is a community property state, meaning that a marriage or a registered domestic partnership makes both parties one “community.” This gives...