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...
Few people will sympathize with anyone writing or calling them for money. But debt collectors serve a necessary role in balancing the financial sector’s basic tenants of fair play. What if exploding technology outpaces rules for retrieving what is legally owed and protecting consumers from overzealousness? The Consumer Financial Protection Bureau recently...
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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...
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...
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...
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...
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,...
Ideally, when a business sells goods or services to other companies, they will have protocols in place in case a corporate client fails to pay for those goods or services in a timely manner. For instance, an organization may decide that it will wait 30 days to receive payment before it sends a demand letter to a client. A demand letter will make clear that...
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...