Put Your Business Debtor’s Proceeds Directly In Your Pocket
You won. The court ruled in your favor – you are owed money. Unfortunately, the battle is not over. Collecting the money you are owed can be a challenge. We can help. Attorney Joshua Friedman knows how to apply pressure and where to apply it. He will hit your debtor hard, where it hurts – the business.
The Role Of Keepers In Debt Recovery
Keepers are critical in debt recovery, mainly when dealing with businesses that handle significant cash. A keeper is an individual appointed by a sheriff or marshal to control a debtor’s business temporarily. Their primary function is to collect funds directly from daily business operations to satisfy a debt owed to a creditor. This process is known as a “keeper levy.”
A keeper remains on-site at the business from a few hours to several days, depending on the court order and the debt they collect. During this time, a keeper collects cash, checks, and credit card receipts from the business’s transactions. By doing so, the keeper can ensure that they can direct a portion of the business’s income towards settling the outstanding debt.
Installing A Keeper: An Effective Way To Force Payment
If your debtor is a business, a “keeper” can be installed. A keeper is a sheriff positioned in the business to collect payment. Instead of paying your debtor, customers or clients pay the keeper, who turns the money over to you.
This strategy is commonly used against restaurant debtors or other debtor businesses that regularly are paid in cash from their customers. Instead of paying the restaurant for the cost of their meals, customers pay the keeper.
The keeper stays at the business, collecting money, until the debt is paid in full. The sheriff also has the power to sell the business’ inventory to repay the debt.
The best part? Your debtor pays the keeper’s fees. The costs of installing a keeper are added to the debt.
Having a sheriff at the business, collecting payment from customers, is not only effective – it’s embarrassing for your debtor. Many business debtors who claimed they couldn’t pay are suddenly able to come up with money just to get the keeper off their premises.
Answering Your Frequently Asked Questions About Keepers
If you are considering hiring a keeper as part of your debt collection efforts, these are some of the questions we hear most from clients:
What is a keeper and how does it work in debt collection?
A keeper is an individual appointed by law enforcement (such as a sheriff or marshal) to oversee and collect funds from a debtor’s business operations. During debt collection, a keeper stays at the debtor’s business to gather money directly from sales to pay off debts. Hiring a keeper can be particularly useful when a debtor’s business generates significant cash flow.
When is the most effective time to install a keeper?
Installing a keeper can most effectively deal with businesses with substantial cash transactions. These types of businesses typically include:
- Retail stores
- Restaurants
- Bars
Installing a keeper is particularly useful when other collection methods have failed and the business continues to generate revenue that can be directed toward the debt.
Who bears the cost of installing a keeper?
Creditors typically bear the costs of installing a keeper. This cost can include fees for the sheriff or marshal’s services and any additional expenses related to the keeper’s presence at the business. But, in some cases, creditors can add these costs to the debtor’s outstanding balance.
How do keeper levies effectively work for cash-based businesses in California?
Keeper levies can be effective for cash businesses in California because they allow creditors to capture cash flow directly from the business’s daily operations. The keeper collects funds on-site, ensuring that cash goes directly to the creditor. This can help increase creditors’ chances of collecting all the money the debtor owes them.
What are the key differences between a keeper levy and a till tap in California, and when is each most appropriate?
A keeper levy involves placing a keeper at a business for an extended period to collect funds continuously. A till tap is a one-time event where law enforcement gathers money from the cash register. A keeper levy can be more appropriate for businesses with ongoing cash flow, ensuring continuous collection over time. A till tap suits businesses with inconsistent cash flow or when creditors need money immediately.
What should I do if I suspect a debtor hides assets through fraudulent transfers?
If you suspect fraudulent transfers, it is crucial to consult with our attorneys at Joshua P. Friedman & Associates, Inc. They can investigate the situation and help you take the appropriate legal action to recover the assets. Prompt action can prevent further asset dissipation and improve your chances of recovery.
Get The Money You Are Owed Now
Trying to collect money can be frustrating. Don’t waste your time chasing debtors. Contact Joshua P. Friedman & Associates, Inc. online or call 310-278-8600. Located in Los Angeles, our firm represents consumer and commercial creditors throughout the state.