Debtors Can No Longer Skip Out of the Country to Avoid Creditors
In our collection practice we have found that it is becoming a commonplace occurrence for debtors to skip out of the country in order to avoid creditors. This scenario typically can be found where you have a debtor who was born in another country and has come to the United States as an adult. When the debtor comes to the United States, he often times does not sever all ties ...
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, ...
What Rights do Creditors Have to Keep Monies Received from a Debtor Right Before He Files Bankruptcy?
Commonly, a debtor will pay a creditor monies owed and then shortly thereafter, will end up filing bankruptcy. The creditor can then usually expect a telephone call from the debtor's attorney or the bankruptcy trustee asking that the monies be returned since the debtor filed bankruptcy. Right about this time, panic sets in because the money has already been spent, or you have already scored major brownie points with your ...
The Dangers of Allowing a Debtor to Play the Creditor Against the Creditor’s Attorney
It is no secret that very few debtors like dealing with collection attorneys. Most attorneys are hard nose individuals with little compassion for the debtor's plight. Because of this fact, it is extremely common for a debtor to attempt to avert the attorney by calling the creditor once the creditor's attorney has contacted him regarding collection of the debt. The debtor knows that for the past several months he has ...
