Some businesses refuse to pay their debts. Despite having a legal obligation to pay, this business remains in operation but does not pay. From a creditor’s point of view, the debtor is using money owed to keep their business afloat. While the debtor may justify these actions by arguing that they must stay open and earn money to repay the debt, the...
Some debtors seem to specialize in being an even bigger thorn in the side of their creditors. It can be a matter where they say that they will pay the money, and then after a few payments, miss one again. Or they pay less than owed but enough to string along the creditor. It may even be a matter where the creditor took the debtor to court and still has...
Using checks to pay for goods and services is less common than it once was. People now often use various electronic methods, ranging from debit cards to credit cards to Venmo or PayPal. However, businesses will still often use checks for B2B transactions. The reasons vary, but checks leave an easily verified paper trail and have a standard format for...
Promissory notes are legally binding contracts that can hold up in court if the terms of borrowing and repayment are signed and follow applicable laws. Important details to include are: The amount of money borrowed Who borrowed the money The date the sum was borrowed The loan’s interest rate (if any, and make sure it is not usurious) The recipient of the...
Determining a precise amount owed on a judgment is a vital part of the collection process. If the amount is incorrect, the court will not issue a writ of execution, which is required to levy on the debtor's assets. And if the court accidentally issues the writ or levy for an incorrect amount, the debtor could seek to quash it. Interest is the issue The...
It is common to hear that a debtor does not have the money to pay a creditor. They may go to court and say it. They may tell the creditor or anyone else, claiming that business is slow or that they are overextended. Of course, this is not what the creditor wants to hear. But during that conversation, the debtor may say they are also owed money and...
The law provides several options for creditors intent on collecting a debt. The creditor trying to collect a debt will file a lawsuit with the court. If the court agrees with the plaintiff, it will issue a writ of execution to the judgment creditor, which allows them the legal right to collect money to satisfy a debt owed to them. Once the judgment...
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...