AVOID THE DEADBEAT SHUFFLE

NEWS FLASH!!! An old customer has been stringing you along with promise after broken promise. The customer buys new materials from you on a COD basis. The old receivable hit the back burner. After more than five years of occasional COD purchases, the customer starts buying from your competitors and refuses to pay. Don’t give up, my clients don’t. Neither do I!

My client contacted me with an almost six year old receivable in the principal amount of approximately $300,000.00. The debtor had offered $100,000.00 as payment in full which my client wisely rejected. I filed suit and I sought and obtained ex parte bank and real estate attachments. Although the real estate attachment missed and the bank attachment caught less than $20,000.00, the individual debtor had numerous properties he held on various trusts, LLC’s and corporations in which I believed he had a beneficial interest. As a result of my persuasive negotiating skills, within twenty days after I filed suit, the debtor coughed up $300,000.00.

SPECIAL REPORT: One of your subcontractors (“subs”) has messed up causing you to incur some expense, but not enough in your opinion to pursue. The sub turns around and instead of appreciating its good fortune, sues you claiming $50,000.00.

What should you do?

Taking no chances, my client contacted me. I promptly filed a counterclaim for the monies which my client had not initially intended to pursue. Due to the amount involved, I took the sub’s deposition. As a result of my careful preparation, it became apparent a discrepancy existed between the sub’s payroll numbers and those he was reporting to the general contractor. During a break in the deposition, I informed the subs counsel as to what I intended to ask and what the evidence would demonstrate and gave the sub the option to walk away from his suit with his dignity. As a result of my thorough preparation and precise and detailed questioning, the sub “gave it up” and walked from $50,000.00.

Although this doesn’t always happen, it could happen for you. Armed with solid paperwork, an aggressive competent collection attorney who knows how to collect debts is a valuable ally in the battle for control of your money.

When Does A Slow Pay Bcome A Deadbeat?
(Or How To Recognize The Deadbeat Shuffle)

The “deadbeat shuffle” occurs when the customer says he will make regular payments but makes only occasional payments thereby leaving some creditors with the deer in the headlights stare.

On the one hand you want to keep the customer and collect as much money as possible without the cost of an attorney. However, dancing this dance to the deadbeat’s tune often delays your receipt of your money. It gives the customer sole discretion as to when and how much he will pay. Dance the dance and the customer may wear you down and then seek a discount of the principal and a waiver of the interest.

So when does a slow pay become a “deadbeat?” A receivable more than 60-90 days is indicative of the onset of “deadbeatitis.” If the customer refuses to enter into a written agreement admitting the amount due and/or agreeing to pay interest and/or reasonable attorney’s fees, you have lost control of your money. If the customer refuses or fails to make what you consider reasonable regular payments toward the outstanding principal and interest, you have lost control of your money.

So how do you attempt to regain control of your money?

Don’t dance the deadbeat shuffle. Send the deadbeat to an attorney who will aggressively attempt to make him dance to your favorite tune. Kaching, kaching!

ã 2007 The Law Offices of Alan M. Cohen, 550 Worcester Road, Framingham, MA 01702. All rights reserved. These materials may not be reproduced without the express written permission of Alan M. Cohen. This publication is designed to provide only general information and should not be used as a substitute for professional services in specific situations. If legal advice or other assistance is required, the services of a legal professional should be sought. This is an advertisement.

Don’t Replace The Deadbeat Shuffle
With An Attorney’s Shuffle.
My Clients Don’t

Other attorneys and collection agencies put your file in Queue for a series of standard and often ineffective collection letters. I don’t.

My philosophy is simple, if the debtor ignored your letters, the debtor will most likely ignore those of an attorney. Further, attorney letters merely warn the debtor that action is imminent thereby giving the debtor the incentive and time to hide assets or prepare its defense before you attack. This only makes the collection of your money more difficult.

Unlike others, when my office receives your file, we immediately start preparing your file for prompt litigation. We first send out post office address checks to verify the location of the debtor. The information received also helps determine in which court I will bring your suit.

While waiting for the results of the postal check, when appropriate, my office continues suit preparation by checking with the Office of the Secretary of State to determine if the debtor is a corporation, LLC or partnership. If the debtor is simply known by its business name, such as “Joe’s Construction Co.”, we may also check with the Clerk’s office in the town or city where the debtor does business in order to determine if a “doing business as” certificate has been filed. The certificate may also identify who is the “real” debtor.

We often check with the assessor’s office to determine who is the record owner of the property where the debtor and/or guarantor reside and/or does business. This may locate an asset to attempt to attach. The information received may also show information of a fraudulent transfer. If I am considering a personal property attachment, I may also contact the UCC division of the Secretary of State to see what property has already been attached.

These methods represent only a cursory overview as to how your file may be handled by my office.

Once armed with this information, I then prepare an appropriate Complaint to aggressively attempt to collect your money for you be seeking, where appropriate, to immediately attach ex parte the debtor’s bank accounts and/or real estate. If you want to collect your money and not merely receive copies of repeated debt collection letters please call Attorney Cohen at 508 620-6900 or email at amc.law@verizon.net.