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.