Many assume that winning their court case is the story's end. The debtor pays the winner whatever the judge or jury decides the damages are, and everyone moves on. Unfortunately, it is often more complex than that. Just because there is a judgment doesn't mean that the debtor will pay the cash they owe. Moreover, it is up to the winner to collect their...
Collecting debts are rarely easy, even if it is from another business. Fortunately, creditors have different attachments to lay a legal claim to a debtor's assets that are equal to the value of the debt. It can be a provisional remedy that prevents the judgment debtor from liquidating or transferring an asset beyond the reach of the judgment creditor or...
Some may think that getting money from a no longer active business is like getting blood from a turnip. Nevertheless, it may still be possible to collect that money if the creditor proactively tracks down information about the debtor. Due diligence is key Before filing a lawsuit, the creditor should gather all available information on the business. For...
Getting payment on an overdue debt is rarely an easy task. Rather than trying to hide, they may argue that the collection violates various laws and regulations. One such example was the Hunstein v. Preferred Collection and Management Services, Inc. While our firm was not involved in this case, it illustrates how a debtor may try to fight back and avoid...
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....
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...
Once a judge awards judgment to a creditor, it is up to the judgment creditor to collect on that debt. Some common ways to do this involve garnishing wages or levying a bank account. The creditor can also file a personal property levy. In situations like this, high-value personal items like a car or truck can service the debt. How a personal property levy...
It’s tough to keep your accounts balanced, especially when you have other companies and clients who don’t pay their bills. You’d really rather avoid collection actions if you can (naturally), and the best way to do that is by taking steps to minimize problems in the first place. A better invoice may help you get paid faster. What are the most common...
A lot of companies have trouble collecting unpaid bills, and they sometimes resort to just about anything to actually get a debtor’s attention. One of the first things they might try after an invoice has gone unpaid for a few months – particularly if communications have become hostile – is a demand letter. What’s a demand letter, and what use is it? It’s...
A sister state judgment is not enforceable in the state until it is authenticated or registered as a California judgment. However, plaintiffs can also file a suit that establishes judgment here. Since judgments don't always involve money, it may be a matter of repossessing real property (house) or personal property (car). In this case, the plaintiff...