How to Make Yourself a Priority to Those That Owe You Money

Many times you will have a client, customer, lessee or borrower (your “debtor”) that has decided their money is better spent on something other than paying your company. What can your company do to make sure the debtor makes your company their “priority”?

If multiple telephone calls and past due notices from you are not having an effect, a letter or a telephone call from your company’s lawyer can often convince the debtor that you mean business. This may be all you need to become your debtor’s “priority” again.

However, your debtor may be dealing with multiple financial difficulties, and more pressure may be needed. If several creditors are chasing your debtor, you can be assured that only the swiftest and most clever creditors are going to get paid. The ones that procrastinate, will not because there is probably not enough to pay everyone.

If your obligation is secured, initiating an action to move against the collateral can often prompt your debtor to respond and pay. Faced with the potential, imminent threat of loss of the personal property used in their business, or loss of real estate, can often bring rapid compliance with payments.

If the collateral is personal property, you can seek to have it marshaled and inspected to prepare for a UCC sale – often just the wake-up call your debtor needs. If the obligation is secured by real property, instituting either a judicial or non-judicial foreclosure action can rapidly make payment to your company the priority.

If on the other hand, the obligation is unsecured or the debtor doesn’t care about the collateral securing the obligation, you may get the “so sue me” response. Many debtors believe that they can file an Answer to a lawsuit and delay repayment for a year or more due to the backup with the court system. This is incorrect. You still have leverage.

Unsecured creditors have the ability to bring a pre-judgment writ of attachment straight away. This is a highly effective tool that allows a creditor to start attaching assets at the beginning of the litigation instead of waiting a year of more for a judgment. If the obligation was personally guaranteed, you can also have plenty of leverage in pursuing the guarantor. Determining the best legal strategy requires a keen eye for details. Missteps or delay can prevent recovery altogether. Make sure payments to your company are kept as a priority. Contact us to discuss your troubled obligation and strategies to leverage compliance.

Spiwak & Iezza, LLP is a full service commercial collection litigation law firm that can counsel your company on the best strategy for maximum leverage, and can effectively guide you through the litigation process to maximize recovery in a cost effective manner. Our firm has had great success in using these actions to bring debtors to the table to make good on their obligations.

Make sure payments to your company are kept as a priority – Contact us to discuss your troubled obligation and strategies to leverage compliance.