Tips for Determining How Long to Hold Onto Your Delinquent Accounts
A few years back when the economy was better, it was quite common for credit managers and loan officers to hold on to their delinquent accounts for up to six months trying to work out a payment plan with their debtors. In fact, it made economic sense to hold on to delinquent accounts for as […]
How to Detect and Prevent Business Credit Fraud
Unfortunately fraud is extremely prevalent in business credit today. One reason for this is that in this tough economy, many businesses are so eager to make the sale, that they do not perform as thorough a credit check as they should. Another reason for an increased amount of credit fraud, is due to otherwise honest […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
How to Handle Your Earthquake (or other Natural Disaster) Affected Debtors
In the first few weeks of 1994 things actually appeared to be picking up for the credit industry. We were receiving telephone calls from debtors stating that they wanted to enter into payment plans to pay off their debts. Many of our collection matters that did not have any life to them, all of the […]