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 ...
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 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 ...
How a Limited Liability Company Affects Creditors
Just when you thought you knew everything there was to know about debt collection and creditor's rights, along comes the Limited Liability Company with its own set of rules. On October 1, 1994, Governor Pete Wilson signed the Beverly-Kilea Limited Liability Company Act into law, thereby giving birth to the Limited Liability Company commonly referred to as the "LLP". The LLP is not like a corporation and not like a ...
Creditors Can Levy on the Bank Accounts of a Debtor’s Spouse Even if it is a Separate Account
It frequently happens that once creditors begin actively pursing a debtor, that debtor will attempt to hide his assets to keep them out of the reach of the creditors. Usually one of the first things a debtor will do, is move his cash to a bank account in his spouse's name. He does this believing that his money is now safe from creditors and that creditors cannot touch those funds ...
The Most Commonly Used Defenses by Personal Guarantors – And the Way to Beat Them
There is nothing more frustrating for an unsecured creditor then when it goes through all of the trouble to obtain a personal guaranty on a corporate obligation, thereafter extends credit based on that guaranty, and later discovers that due to a technicality, the guarantor is able to absolve himself of liability and the creditor is left with the loss. However, as this article will explore, with a few precautionary measures, ...
