Middlesex Superior Court… A supplier’s former customer didn’t pay its bill of approximately $47,000.00 for almost four years. The supplier held the mistaken belief that only written off bad debt could be sent to collections. Fortunately, the supplier wrote off the debt before the expiration of the UCC four-year statute of limitations. Not wanting to allow the debtor to get away with non payment, the supplier called me.
Fortunately, I am experienced in collecting old commercial debts. Ordinarily delaying turning an account for collections more than 120 days past due, never mind more than three years past due, makes debt collection difficult for most.
Not for me.
Knowing that the statute of limitations for sellers of goods and materials is only four years under the Uniform Commercial Code, I immediately took action. After conducting a limited asset search using Lexis Nexis, I promptly prepared a complaint affidavit and ex parte attachment motions. Once the supplier signed the affidavits, I was off to court to try to collect this old commercial debt.
The Superior Court Judge declined to issue the attachments on an ex parte basis. I persuaded the court to issue a “short order of notice” which allowed the attachment motions to be heard on expedited basis. After the sheriff served the summons, complaint and attachment motions on the defendant, I received a telephone call from opposing counsel. Due to my reputation and my aggressive, but ethical, debt collection tactics I negotiated with opposing counsel a favorable settlement resulting in a lump sum payment of the entire principal balance and some attorney fees for a total amount in excess of $58,000.00.
Can you say “KA –CHING!!!!”? My clients can.