There are numerous laws restricting the activity of debt collection professionals. In general, both professional collection specialists and those pursuing internal collections for a business must carefully comply with federal and state rules about fair debt collection practices. Many of those rules aim to curtail abuses, like harassment, that can cause a...
Creditors in California that are owed money by individuals who seem eager to avoid their responsibilities have options. While both state and federal law regulate collection efforts in an attempt to prevent abuses, the laws intended to protect consumers often put businesses owed money by individuals at a legal disadvantage. However, these organizations have...
Most individuals who take on personal debt are responsible for their financial obligations. They make timely payments and communicate if something occurs that will result in a late or missed payment so that creditors don't feel the need to engage in immediate collection activity. Unfortunately, there are also a few people who attempt to engage in...
The legal system is designed so that different courts have different jurisdictions. Generally speaking, those who wish to take legal action against a debtor must file papers in the jurisdiction where the debtor owns assets. For example, they may reside in New Mexico, but most of the debtor's assets could be investments located in California. So, suppose...
Creditors have to jump through many legal hoops to collect money from debtors. Even after winning a judgment, they still have to collect their debt, often taking further legal steps. Many debtors are well aware of the process and do their best to avoid paying. One misdirection they sometimes use is hiding assets under an alter-ego, pseudonym or related...
Sometimes it is necessary to take legal action to collect debts from a business. Still, even when the courts rule in favor of the plaintiff, the creditor is responsible for collecting the debt owed to them. Garnishing income from a business is one option, but it is also possible for the creditor to garnish non-wage assets. Assuming that the asset is...
People hear the words "business asset" and immediately think of money, real property, products, and other things of value that physically exist. On the other hand, intangible assets also add value to the company but instead involve such concepts as agreements, reputation, goodwill, non-competes, patents and copyrights. These can be hard to put a value on,...
Generally speaking, a debt is only gone when the debtor pays it. Still, California does have a four-year window in which the creditor can take legal action to enforce a valid written contract. However, the clock on the four-year limit can restart each time a debtor makes a partial payment – a partial payment or acknowledging the debt after the four-year...
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...