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Some may think that getting money from a no longer active business is like getting blood from a turnip.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...
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...