The Client’s Role in Settlement Negotiations
Debtors today have become extremely savvy. Many of them have dealt with enough creditors and creditor's attorneys to know exactly how to turn the situation around to their advantage. The following scenario is a typical example of this: A credit manager has an account that goes delinquent. After unsuccessfully attempting to collect the debt, he turns the matter over to our law firm to institute legal action to collect the ...
What to do when Your Debtor Claims He Is Not Responsible for the Debt Because He Sold the Business to New Owners.
In the world of collections, it is quite common to run across corporate debtors that have recently been sold to new owners. This is because people like to sell businesses that owe money in an attempt to defraud creditors. They believe that if they sell the business, they won't be responsible for the debts of the business any longer. What usually happens is when the creditor calls the business to ...
Attacking a Debtor’s Trust
In our collection practice we have found that many debtors try to hide their assets from creditors by putting their money into a trust. The debtors believe that as long as this money is not in their name individually, they are protected from levy by their creditors. This is absolutely incorrect. If a creditor knows what he is doing, he can just as easily attach that money as he could ...
The Creditor’s Best Weapons after a Judgment
One of the biggest complaints I hear in the collection field, is that most attorneys focus primarily in obtaining a judgment while the focus for their creditor clients is collecting the money owed by their debtor. There is no question that this is a true statement and that the creditors are absolutely correct. The attorneys that believe this are dead wrong because a judgment and fifty cents will buy you ...
The Courts Give Creditors a Powerful New Weapon to Fight Debtors
One of the most frustrating aspects of collections that creditors face, is dealing with a debtor who unquestionably knows that the debt is due and owing, but who spitefully forces the creditor to proceed with costly litigation to collect their money. This type of debtor usually has no remorse for his debt and will even go so far as to hire an attorney to complicate and stall the litigation for ...
Knowing How Far to Push Your Debtors
My initiation into the world of collections began back in the early 1980's when our economy was still fairly strong. In those days, the prevailing mode of thought when an account became delinquent, was that you came on like a bulldozer with your debtors and did not stop until all monies were collected in full. Unrelenting aggression was the order of the day. And it worked! The more intimidating and ...
