Joshua P. Friedman & Associates, Inc.Joshua P. Friedman & Associates, Inc.2024-02-16T04:29:19Zhttps://www.losangelescollector.com/feed/atom/WordPress/wp-content/uploads/sites/1502483/2020/02/cropped-favicon-jpf-32x32.pngOn Behalf of Joshua P. Friedman & Associates, Inc.https://www.losangelescollector.com/?p=486842024-02-12T04:30:59Z2024-02-16T04:29:19Zuphold a judgment from a sister state. Essentially, if a creditor has documentation from a prior court case, it may be possible to convert a judgment from elsewhere into a judgment enforceable in California.
Businesses can potentially take this step without relitigating the initial claim or even giving the debtor a chance to respond. Particularly in cases where a debtor has moved house or quit jobs as a way of avoiding collection efforts, the faster the business can move to collect on the debt, the better.
An attempt to enforce a debt from a sister state in California can help a company compel someone who has earnestly sought to avoid financial responsibility into paying toward the balance that they owe. A creditor with a California judgment may have several different options for recouping the money owed by a debtor who has recently relocated to the state.]]>On Behalf of Joshua P. Friedman & Associates, Inc.https://www.losangelescollector.com/?p=486832024-02-12T04:27:20Z2024-02-16T04:26:37Zare government debts. Someone who owes income tax or property tax debts might never see the deposit of their income tax refund. Even those behind on government loan payments could lose their tax refund to interception by the state.
Private creditors usually cannot intercept a tax refund before it reaches someone. However, creditors could access the funds deposited if they have a judgment and a writ of levy. Given that tax refunds are often one of the only times that people receive large lump-sums of money not already allocated to basic household expenses, they can represent money that creditors could claim if debtors do not already intend to use them to fulfill their financial obligations.
Any creditor hoping to intercept a tax refund before it hits somebody's bank account likely needs to take legal action before the tax refund is available. The writ of levy that the courts authorize is typically valid for 180 days. If the creditor presents the writ of levy to a debtor's bank, the institution may freeze or transfer funds up to the full amount owed.
Realistically, creditors have few ways of knowing when someone files their taxes and, therefore, when they might receive a refund. They can usually only utilize a writ of levy against an account one time unless they go back to court. Yet, there is little doubt that exploring every possible avenue for repayment may benefit those attempting to collect on a debt in California.]]>On Behalf of Joshua P. Friedman & Associates, Inc.https://www.losangelescollector.com/?p=486812024-01-11T04:46:22Z2024-01-17T04:45:32ZAccording to the Consumer Finance Protection Bureau (CFPB), medical debt is the most frequent kind of collection actions that appears on consumer credit reports. A whopping 57% of collections of this kind are related to medical debt. Yet, debt collection activity related to overdue medical bills declined by a truly significant 37% between 2018 and 2022. The sense is that fewer debt collectors are reporting collections activity related to medical accounts to the major credit bureaus. But, it is also quite possible that fewer debt collection efforts are being made concerning overdue medical expenses. Given that collecting medical debt presents a unique set of challenges that distinguishes it from other forms of debt collection, this isn’t exactly surprising.
Why are medical debt collections unique?
Collection of medical debt is a sensitive undertaking, due partially to the complexities of healthcare billing, partially due to the emotional and physical vulnerabilities of patients and partially to the ethical and legal considerations unique to this type of debt. Medical debt is often incurred unexpectedly. Unlike consumer debt, which might be associated with discretionary spending, medical debt is usually the result of unforeseen illness or injury. This means patients are often dealing with physical and emotional stress alongside their financial obligations, making the debt collection process more sensitive. Similarly, because this kind of debt is often unexpected and necessary, even the most financially responsible adults may not be in a position to cover these debts with any speed. Additionally, because the healthcare system's billing processes can be intricate, they can be confusing for patients. Bills from multiple providers, insurance adjustments and complicated payment structures can lead to genuine confusion about the amounts owed. Therefore, when collecting medical debt, there's a need for clarity and understanding in explaining these charges to patients.Finally, there’s an ethical dimension to collecting medical debt that doesn't exist with other types of debt. Those who owe such debts may be terribly sick, injured or may have just lost ill or injured loved ones. Therefore, seeking a resolution to outstanding medical debt often requires greater compassion, diplomacy and attention to detail than other debt collection efforts.
Moving forward with medical debt collections
Understanding the patient's financial situation can lead to more effective collection strategies. Offering payment plans demonstrates empathy and can result in more successful debt recovery. Similarly, clear dialogue that helps patients understand their bills and their options can alleviate stress and confusion can potentially lead to more fruitful outcomes. With all of this being said, there are times when taking more aggressive action may become necessary. If so, seeking legal guidance can potentially help debt collectors more successfully navigate their particularly sensitive and challenging recovery needs. ]]>On Behalf of Joshua P. Friedman & Associates, Inc.https://www.losangelescollector.com/?p=486822024-01-11T04:44:36Z2024-01-17T04:44:04Zfour-year statute of limitations. This period begins from the date of the last payment or when the debtor last acknowledged the debt, whichever is later.
Collectors must track these dates meticulously because any legal action to enforce the debt through the courts must occur within this timeframe. Collecting a debt beyond the four-year limit reduces the likelihood of successful recovery and exposes collectors to potential legal challenges.
Verbal agreements
California law allows a shorter statute of limitations of two years for oral agreements. These cases often present unique challenges due to a lack of written evidence. Thorough documentation of any payments or acknowledgments made by the debtor is vital. The two-year period starts when the debt is due, or the last payment is made. Debt collectors must be proactive in these situations, as the limited time frame requires swift action to ensure legal compliance and maximize the chances of debt recovery.
Navigating the statute of limitations is a delicate process. Attempting to collect on a debt after the expiration of the statute of limitations can lead to accusations of violating consumer protection laws.
To effectively manage collections within these legal boundaries, collectors should establish comprehensive systems for tracking the age of debts and any relevant payment or acknowledgment activities. Seeking legal guidance can also help to ensure that their collections efforts are operating within compliance of all applicable laws.]]>On Behalf of Joshua P. Friedman & Associates, Inc.https://www.losangelescollector.com/?p=486792023-12-11T18:46:00Z2023-12-13T05:54:40ZHow judgment liens work
A creditor with a judgment can ask the courts to grant them a lien against real property. The business requesting the lien will need the paperwork from the civil court judgment in their favor. They must record the lien at the relevant county recorder's office. Someone's primary residence or any investment properties that they hold could be subject to a creditor lien.
A record of the lien will show up during any title search. The debtor will not be able to sell or refinance the property unless they first pay the creditor in full. Most people, including those who have sought to avoid financial responsibility previously, may do whatever is necessary to protect the investment they have made in their homes. They may finally agree to start making payments to remove a lien or avoid its enforcement.
Lien enforcement may involve foreclosure
The creditor granted the judgment and holding the lien can also potentially ask the courts to have the sheriff or U.S. Marshall sell their property if the situation warrants this extreme action. Other times, a debtor might refinance as a way of retaining ownership while simultaneously securing the capital that they require to pay off their debts.
Learning about less common debt collection options, including lien enforcement and foreclosure, may help creditors obtain appropriate repayment from those who have previously refused to take financial responsibility for what they owe.]]>On Behalf of Joshua P. Friedman & Associates, Inc.https://www.losangelescollector.com/?p=486782023-12-11T18:44:24Z2023-12-13T05:52:07Zcomply with established standards.
First and foremost, any communication about debts on social media will need to be private. Additionally, every attempt at communication will need to give someone the opportunity to opt out of future communications. The person reaching out to the debtor will need to introduce themselves as a debt collector. Finally, the business will need to give the debtor the option of opting out from communication via that social media platform in every message
When companies follow the rules, social media can be useful both for communicating with individual debtors and improving a company's skip tracing. The information available online can prove useful as a company attempts to locate a debtor, their employer or their resources for debt collection purposes.]]>On Behalf of Joshua P. Friedman & Associates, Inc.https://www.losangelescollector.com/?p=486772023-11-03T04:04:07Z2023-11-09T05:03:44ZCalifornia Uniform Fraudulent Transfer Act allows creditors to question certain financial moves.
If someone started a trust years before they had financial issues, then it may be an uphill battle to try to take action against any of the assets in the trust. However, if someone owned certain assets until recently and only just moved them into a trust, creditors may be in a position to raise claims of fraudulent activity in civil court. Especially if the transfer occurred after incurring a debt or made the debtor insolvent on paper, creditors could challenge the transfer in court.
Judges sometimes allow creditors to move forward with collection activities that a trust might otherwise prohibit due to the fraudulent circumstances affecting the situation at hand. As a result, seeking legal guidance and better understanding the rights of California creditors may make it easier for businesses to hold individuals accountable for their unethical and potentially fraudulent financial behavior.]]>On Behalf of Joshua P. Friedman & Associates, Inc.https://www.losangelescollector.com/?p=486762023-11-28T18:26:05Z2023-11-09T05:02:11ZWhat is a Debtor's Examination?
Under California law, it is possible to request a thorough examination of someone's financial records if they have refused to properly pay their debts. When requesting a Debtor's Examination, creditors can also submit a request for a subpoena signed by the court clerk. The subpoena can give a creditor access to pay records and bank statements.
Creditors can then schedule a hearing in court where the person who owes money will have to provide crucial records and answer questions. If they lie during the Examination, they could face penalties if that fact comes to light. Generally, debtors will need to provide a statement of personal assets unless they pay the amount they owe in full before the scheduled court date.
Although it can be a lengthy process, a Debtor's Examination does provide a creditor with an opportunity to hold someone accountable for seeking out under-the-table payments as a way to avoid their financial obligations. They could locate their employer or find assets that can help repay the outstanding debt. Financial records can help show that someone does have money coming into their household, and questioning can lead to information about where they acquire financial support.
Learning more about California's laws about creditor rights and debt-related legal actions may benefit organizations dealing with someone who doesn't want to fulfill their financial obligations. Seeking legal guidance accordingly can be helpful as well.]]>On Behalf of Joshua P. Friedman & Associates, Inc.https://www.losangelescollector.com/?p=486742023-10-10T18:59:23Z2023-10-12T08:56:06Zright of discovery might help a business attempting to collect on a debt uncover previously undisclosed assets or obtain a more thorough understanding of someone's current financial circumstances.
A creditor might discover that a person who has reported an income level too low to make wage garnishment a worthwhile endeavor actually has a second job. Creditors could then use that new information after securing a judgment to speed up the debt collection process.
Many businesses, especially smaller companies, dealing with recalcitrant debtors may have a hard time navigating the legal process without legal support. Having professional guidance when attempting to collect on a sizable debt can help organizations avoid debt collection violations and potentially improve their odds of obtaining full repayment.]]>On Behalf of Joshua P. Friedman & Associates, Inc.https://www.losangelescollector.com/?p=486732023-10-10T19:00:46Z2023-10-12T08:54:02Zsend a written notice to known creditors and will typically publish notice of the probate proceedings in the newspaper. Creditors can then bring a claim against the estate if the representative does not immediately pay them in full after determining the final balance of the account. Probate claims brought by creditors can lead to full or partial repayment depending on the assets in the estate.
The representative will usually need to use any and all estate resources to pay off debts before distributing anything to the selected beneficiaries named in the estate planning paperwork. If there are not enough assets to pay every creditor in full, the representative will need to pay them in order of priority, with certain debts, including probate costs and taxes, taking priority over others.
Provided that the professionals working in the collection or accounting department of a business understand the probate debt collection rules of a particular state, they can potentially seek repayment from someone's estate when they die with a balance still owed. Learning more about how California protects the rights of creditors may help organizations comply with the law while seeking the repayment they’re owed.]]>