The commercial collection process can feel overwhelming sometimes. When a customer or client fails to pay for a service or goods you provided, you may not be sure what steps to take to recover your money. At Law Offices of Alan M. Cohen LLC, we have many tools we use to pursue overdue debt and understand when to use each tool. Prejudgment attachments allow us to identify the debtor’s assets before the court issues a judgment, which we can then seize to satisfy the judgment. One type of prejudgment attachment is a keeper attachment.
How the keeper attachment works
In Massachusetts, the court may decide to appoint a “keeper” to collect cash from the debtor on your behalf. This works best when your debtor is a cash-heavy business, such as a retail store or restaurant. The keeper has a court order to collect the cash that comes into the business until the debt is fully collected.
Of course, you only keep that money if you are successful in court and obtain a judgment. The benefit is that you know you have a secure payment source once you do win your judgment. Many times, companies do not want the intrusiveness of a keeper attachment affecting their business and come willingly to the negotiating table.
You can pursue some prejudgment attachments ex parte. That means you can attach the debtor’s property without notice. Courts will often only allow ex-parte attachments if you can show that the debtor is likely to squander or spend the asset in an attempt to avoid the judgment if they receive notice. Courts rarely allow keeper attachments to proceed ex-parte due to the impact they have on the debtor’s business operations.
It pays to take action early
Companies often wait too long to collect on bad debt. We understand that debt collection is not everyone’s favorite thing to do. If one of your customers is heading for financial trouble, however, you need to act quickly to establish your claim to the assets they have. A keeper attachment allows you to secure your money even before you have a judgment in hand. This might be especially helpful if the customer heads into bankruptcy, which could make collections much more difficult.
Rely On Law Offices of Alan M. Cohen LLC To Help You Collect
We are here to explain your options for commercial debt collection. Our experienced collection attorneys have been helping clients throughout Massachusetts since 1994. Our goal is to get you paid. Call 508-763-6604 or reach out to us by email to schedule an appointment.