Success Story #1: You receive a letter from an attorney or accountant stating that your debtor is closing its doors and can't pay you. Don't give up. Our clients don't. They call us.
After receiving such a notice, our client decided not to just walk away from the $10,000.00 due to it from the debtor. It took action and hired us. We immediately sued and obtained an ex parte attachment on the deadbeat's bank account and its personal property. Contrary to the debtor's representations, it had money in the bank -- $11,000.00, specifically.
To attempt to avoid paying our client and its other creditors, the debtor made a general assignment for the benefit of the creditors (a common law bankruptcy). However, a general assignment does not automatically wipe out an attachment. Undaunted, we defaulted the defendant, assessed damages and got the money -- all $11,000.00.
The moral of the story is that by not being intimidated by a "going out of business letter," our client received payment in full of its debt. The debtor's other less aggressive creditors no doubt fared much worse.
Deadbeat Buster News Wire
Don't let your receivables get away without a fight. Our clients don't.
Success Story #2: Sometimes even when you have done everything right, your customer "finds" a "reason" not to pay you. That happened to one of our clients when it delivered $42,000.00 of concrete to a job site. The customer admitted owing twenty grand. Yet, he refused to pay anything unless our client walked away from the remaining $22,000.00 balance. Months passed without payment. Unwilling to give up what was rightfully his, the client called us.
We promptly sued. The customer counter-claimed seeking $70,000.00 from our client. After the parties did discovery, we convinced the other attorney to agree to non-binding mediation. After almost five hours of mediation, the customer relented, agreeing to pay our client all of the principal and a healthy amount of interest and gave up its $70,000.00 counterclaim.
Final score: Our client -- $50,000.00, Debtor -- Zippo!
Success Story #3: One of your biggest customers is going to stick you with a $70,000.00 debt and starts buying from your competitor. WHO ARE YOU GOING TO CALL? ATTORNEY ALAN M. COHEN LLC, THAT'S WHO!!!
Company X did. Within three business days, we filed suit and ex parte attachments were appropriately obtained. The day after the Deputy Sheriff served the bank attachments the deadbeat was in our office. It seems that the attachments caught over $70,000.00 and that this crimped the debtor's style. Within a few days, the debtor had given a security interest in all of its businesses, a mortgage on its principal's house, and a commitment to purchase more than $20,000.00 in new business. Our client recovered all of the amounts due, including attorney's fees.
Don't Let Old Receivables Get Away Without a Fight.
Our Clients Don't.
Success Story #5: Sometimes a customer just "disappears" owing a company money.
Company Y had this very problem. Collection "efforts" by a collection agency had reached a dead end. The collection agency called us. We found that although the deadbeat owned no real estate, he was an officer in a corporation. We sued to reach and apply the deadbeat's interest in the corporation. We obtained an Injunction preventing the corporation from paying any money to the deadbeat until our client was paid. Because of our efforts, the debtor came to the table. Within 60 days, our client was paid. The collection agency gave up. We didn't.
Success Story #6: A couple hire an attorney to negotiate a work out with the Internal Revenue Service. The Attorney convinces the IRS not to seize his client's wages but to accept a reasonable settlement. The happy clients then rewarded the attorney by stiffing him.
While crying poverty, the deadbeats purchase a new home for more than double the cost of their existing home.
Shortly after being retained by the attorney and after investigating the location of the deadbeats' new house, we brought suit. We obtained an ex parte bank attachment and after notice, obtained a real estate attachment.
The defendants answered disputing the amount of the debt. We then filed for summary judgment (a procedure of winning the case without the need for a trial). We won the case, obtained the execution and had the sheriff levy and suspend the sale of the deadbeats' house.
We rejected forcing a sheriff's sale because of the amount of mortgages ahead of our client's attachment. Instead, we filed a new complaint seeking to attach Mr. Deadbeat's wages.
Facing possible humiliation at work, the deadbeats agreed to pay the entire principal amount due with all accrued interest and court costs.
These examples, as well as those in the Aggressive Debt Collection section of the Web site, show many debt collection tools, such as ex parte bank and personal property attachments, special attachments of fraudulently transferred property, use of a mechanic's lien and foreclosure. Although positive results don't always happen, armed with proper paperwork (and sometimes not) our use of an aggressive approach to debt collection pays dividends to our clients. Unless tactically warranted, when collecting commercial debt, we immediately sue and pursue prejudgment security so that when you are successful, there will be something to collect.
The old adage that "he who hesitates is lost" is very true in commercial collections. In an uncertain economy, do you want to entrust your collection efforts solely to those who make minimal efforts for you or do you want action?
The Law Offices of Alan M. Cohen LLC represents clients and sues debtors in Middlesex County, Boston, Bristol County, Suffolk County, Springfield, Hampden County, Norfolk County, Dedham, Plymouth County, Salem, Brockton, Essex County, Cambridge, Worcester, Worcester County, Barnstable County and throughout Massachusetts.
The information you obtain at this site is not, nor is it intended to be, legal advice. Nor shall contact through said site establish an attorney client relationship, absent a formal fee agreement. You should consult Attorney Alan M. Cohen for individual advice regarding your own situation.
