HIRE THE ATTORNEY OTHER ATTORNEYS HIRE TO COLLECT THEIR UNPAID BILLS!
MIDDLESEX —- Even an attorney can get stiffed on a bill. After running up a tab of $61,000.00 in legal fees, the debtor refuses to pay his own attorney. Despite numerous requests for payment, the debtor refuses to budge. After unsuccessfully exhausting all of his attempts to collect the outstanding bill on his own, the attorney hired me.
After conducting a limited asset search, I filed suit and sought to attach the debtor’s real estate and banks accounts. As a result of my aggressive action, I was able to negotiate a settlement which incentivized the debtor to pay $75,000.00 within a year or be liable for the full amount which, with, interest exceeded $110,000.00. I successfully negotiated with debtor’s counsel and obtained a mortgage on land held by the debtor’s real estate trust that I knew had more than sufficient equity to pay the full amount of the debt. I also included a clause that reduced the interest rate of 9% if the debt was timely paid, but snapped back to the contractual rate of 18% plus attorney fees in the event of default.
I then waited. When the debtor failed to make payment in the year, I immediately gave notice of default. The debtor through his counsel then attempted to negotiate the default away, but my client and I refused to budge. Six months after the default, I collected over $130,000.00 for my client.
Can you say KA-CHING? My clients can.
Whether you are an attorney, banker, consultant, contractor or supplier, bad debt is a pitfall of business. For bad debt over $5,000.00, call Alan M. Cohen at (508) 620-6200 or email firstname.lastname@example.org.